The age of banking was thought to have started nearly three centuries ago when the idea of banking came to be introduced. In India the private banking got introduced in 19th century that proved to be a miracle of its kind and people found this to be really an effective system of safeguarding their capital. The commercial banks were under the private sector in the early time and thus were more businessman friendly than being public friendly, but when, after independence the banks got nationalized, it became a kind of change that was for the benefit for all and this change that made the banks nationalized forever can be illustrated as follows:-
Why were Banks Nationalized In India
1. The Various Dates Related To Nationalization:-
In the year 1969, 14 commercial banks were nationalized that earlier were serving the business class. In 1980, again nationalization hardened its grip and soon all the banks of the country got nationalized with the new era of financial knowledge being provided to all irrespective of their financial status in the society.
2. To Have A Check of The Monopoly:-
The other reason for banks to get nationalized was to have a check for monopoly. The Nationalization meant that a large part of private controlled banks would be controlled by the state and this made the level of separation between the low or trivial class and businessmen or upper class to get somewhat diminished.
3. Financial Accessibility:-
Another reason for which banks were nationalized in India was that it would provide financial accessibility to the people and this would take banking in the rural areas as well. The benefit of taking banks to rural areas was that the common people or the farmer could get benefited and even they became financially stable with various schemes issued in public interest by the government.
4. To Create Financial Awareness:-
One more reason why banks got nationalized in India was that the government wanted to create financial awareness amongst people and to create a widespread of awareness about savings, deposits, lending and borrowing amongst the backward or common classes would bring about a significant change was also known to the officials.
5. Improved Regulation:-
with the concept of Nationalization, the officials wanted to make government have a direct control over the lending as well as borrowing procedures and wished to make it even with every part of society providing a free and fair concept of banking for all.
6. In Order To Have An Equal Treatment For Businessman And Poor People:-
The first reason for banks to get nationalized in India was to have an equal treatment for businessman as well as poor people as the earlier forms of banks were totally commercialized and they focused only on the benefits of businessman and profit making.