The government of India has nationalized 14 major banks on July 19, 1969 which had deposits of more than Rs 50 Crore and Six more Banks were nationalized on April 15, 1980 which had deposits of Rs. 200 Crore. After nationalization, government had acquired full ownership over these banks. These banks are now controlled and owned by government of India.
Name of Banks which were nationalized in 1969 are as follows:
- Punjab National Bank
- Canara Bank
- Dena Bank
- Bank of Baroda
- United Bank of India
- Bank of Maharashtra
- Syndicate Bank
- Union Bank
- Central Bank
- United Commercial Bank
- Bank of India
- Indian Overseas Bank
- Indian Bank
- Allahabad Bank
Name of Banks which were nationalized in 1980 are as follows:
- Oriental Bank of Commerce
- Corporation Bank
- Andhra Bank
- Punjab & Sindh Bank
- Vijaya Bank
- New Bank of India
After the merger of New Bank of India with Punjab National Bank in 1993, now the number of nationalized banks has been reduced to 19.
Objectives of Nationalization of Banks were as follows:
- To raise public confidence in banking system
- To mobilize savings from the rural and urban areas in terms of bank deposits.
- To Expand banking facilities in rural and sub-urban areas.
- To give more credit to the priority sectors, like agriculture, small industries and traders.
- To ensure enough development funds for the planned growth of the country.
- To decentralize economic power. It is a step to break the control of big industrialists upon the banking system.
- It reduces regional inequalities and helps the poor.