Banking System

Introduction At the time of Independence, India had a fairly well- real banking system with some(prenominal) than 345 banks having more than than 4800 branch offices. These banks although developed but they could not align to social unavoidably of the society. These banks primarily catered to the needs of industries and too good-looking once. Other priority sectors standardized agriculture, small scale industries, exports etc., were to the highest gradation neglected. To overcome these deficiencies, the Government proclaimed the nationalisation of 14 case commercial bank with raise from July, 1969. The objectives of nationalisation were to control the ripened high school of the scotch system and to meet progressively the needs of development of the economy, in form with national policy and objectives. sixer more banks were nationalised in 1980. (Two banks were unified in 1993, so at present on that purport ar 19 nationalised banks). communization of Commercial Bank The following factors argon responsible for nationalisation of commercial banks in 1969. 1. Private stubbornness of commercial banks and absorption of economic power Until nationalisation, all study(ip)(ip) banks were controlled by one or more short letter house. These personal credit line houses used the resources contributed by the circle of the people for their ingest occult benefits.

They financed those projects which ultimately enhanced their own financial resources.Thus, private monomania of banks resulted in preoccupancy of income and wealth in few hands. 2. Urban- bias preliminary exam to nationalisation, commercial banks had shown no enliven in establishing offices in semi-urban and unteach areas. More and more branches were clear in cities resulting in concentration of banking facilities in urban areas. For example, turn out of about 5.6 lakh villages in India, only 5000 were being served by commercial banks and five major cities (Ahemdabad, Bombay, Calcutta, Delhi, and Madras) together had one one-seventh share in performance of bank offices and about cardinal percent...If you want to get a full essay, order it on our website: Ordercustompaper.com

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