Banking History - Nationalised Banks in India - Bank Nationalisation in India

 In India, the Banking Sector has been dominated by Government or Public Sector Banks for last 64 years. In 1954 the All India Rural Credit Survey Committee submitted its report recommending creation of a strong, integrated, state-sponsored, state-partnered commercial banking institution with an effective machinery of branches spread all over the country. The recommendation of this committee led to establishment of first Public Sector Bank in the name of State bank of India on July 01, 1955 by acquiring the substantial part of share capital by Reserve Bank of India, of then Imperial Bank of India. Similarly during 1956-59, as a result of reorganization of princely states, the State Bank of India associate Bank came into fold of Public sector banking.

On July 19, 1969, the Govt. promulgated Banking Companies (Acquisition and Transfer of Undertakings) ordinance 1969 to acquire 14 bigger commercial banks with with deposits over 50 crores. The main objective behind this bank nationalisation was to spread banking infrastructure in rural india and make cheap finance available to Indian farmers.

The second phase of bank nationalisation took place in 1980 during the prime ministerial tenure of Indira Gandhi, in which 7 more banks were nationalised with deposits over 200 crores.

List of Nationalised Banks in India:

1. Bank of Baroda
2. Bank of India
3. Bank of Maharashtra
4. Canara Bank
5. Central Bank of India
6. Indian Bank
7. Indian Overseas Bank
8. Punjab and Sind Bank
9. Punjab National Bank
10. State Bank of India
11. UCO Bank
12. Union Bank of India