Bank Nationalization

The three phases of bank nationalizations that led to major changes in India were: SBI, which was the only nationalized bank in India other than the Reserve Bank of India until 1969. In 1969 , 14 banks were nationalized, and in 1980 , 6 banks were nationalized. Indira Gandhi was the Prime Minister during these periods. The main objectives of nationalization were to bring the banking system to rural areas and to provide easy access to financial assistance to farmers. The first phase of bank nationalization took place on July 19 , 1969. 14 banks with deposits of more than Rs. 50 crore were nationalized. The banks are:

1. Central Bank of India

2. Bank of Baroda

3. Bank of India

4. Punjab National Bank

5. UCO Bank

6. United Bank of India

7. Union Bank

8. Canara Bank

9. Allahabad Bank

10. Dena Bank

11. Syndicate Bank

12. Bank of Maharashtra

13. Indian Bank

14. Indian Overseas Bank

The second phase of bank nationalization was on April 15 , 1980. This time, six banks with a deposit capital of more than 200 crores were nationalized. The banks are :

1. Vijaya Bank

2. Punjab and Sindh Bank

3. New Bank of India

4. Oriental Bank of Commerce

5. Andhra Bank

6. Corporation Bank

Among the nationalized banks, New India Bank was taken over by Punjab National Bank ( 1993) after it went into crisis. The number of Vijaya Bank and Dena Bank was reduced from 20 to 17 after the merger of Bank of Baroda ( April 1, 2019 ) .

The third phase of bank nationalization took effect on April 1 , 2020. The largest merger in the history of India's banking sector came into effect. 10 public sector banks merged to form four large banks. Punjab National Bank , Canara Bank , Indian Bank , and Union Bank are the banks that continue after the merger. Oriental Bank of Commerce and United Bank of India merged with Punjab National Bank. Syndicate Bank merged with Canara Bank and Allahabad Bank merged with Indian Bank. Andhra Bank and Corporation Bank became Union Bank of India. In the third phase of bank nationalization, innovative systems such as ATMs , credit cards , phone banking , net banking , and core banking were implemented. After the third phase of bank nationalization, the number of public sector banks in India has increased to twelve.

1. Central Bank of India

2. Bank of Baroda

3. Bank of India

4. Punjab National Bank

5. UCO Bank

6. Union Bank

7. Canara Bank

8. Bank of Maharashtra

9. Indian Bank

10. Indian Overseas Bank

11. Punjab and Sindh Bank

12. State Bank of India

Bank nationalization was introduced in the country for important goals such as freeing the banking sector from private individuals , providing maximum service to the rural areas, providing loans to priority groups , and making employees job-oriented. The government's action was very beneficial in providing banking services to the common people in backward areas. Nationalization helped improve the Indian banking sector in a more beneficial way for the customers.