The bank nationalization in 1969 was primarily aimed at:
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
Extending credit to agriculture, small industries, and priority sectors
Explanation:
The bank nationalization of 1969, carried out under Prime Minister Indira Gandhi, was primarily aimed at aligning the banking sector with the socio-economic objectives of the country. It sought to control the commanding heights of the economy, prevent the concentration of wealth in a few private hands, and redirect credit availability toward agriculture, small-scale industries, and other neglected priority sectors that previously lacked adequate institutional financing.
Key Points:
On July 19, 1969, 14 major commercial banks with deposits of 50 crore rupees or more were nationalized.
This major policy shift ensured that public savings were channeled into productive sectors in rural and semi-urban areas, fostering inclusive growth.
It also increased the public's confidence in the banking system, leading to a massive expansion of bank branches across the country.
Important Questions and Answers:
Question: How many major commercial banks were nationalized in the first wave of nationalization in 1969?
Answer: 14 major commercial banks.
Question: Who was the Prime Minister of India during the 1969 bank nationalization?
Answer: Indira Gandhi.