Other Nationalised Banks

Introduction

Banks play an essential role in today’s generation. People deposit their earnings and savings into their bank accounts, showing trust towards the banks. In addition, Banks also play an important role in the credit creation process of the economy. People must know about the history of their trusted banks around the country. One of the major turn over in history with regards to these financial institutions is the transfer of ownership to the Central Bank of the country, that is, the Reserve Bank of India. It was the first nationalised bank in India. The Reserve Bank of India came into existence in 1934. Three prominent banks of the British era merged- Bank of Bengal, Bank of Madras, and Bank of Bombay- into Imperial Bank of India. The roots of the Indian Banking process are related to the British Economic policies and ways. The banks were used by the British for the exploitation of the financial situations of the country. It was used as a tool. In the 1770s, the banking system began in the country with the “Bank of Hindustan”. Nationalised Banks in India came into being first in the pre-independent period. The most intense period of the Nationalisation of Banks in India was between 1949 and the 1990s. This period is often known as the Nationalizing period of India. 

Chronological Evidence 

The nationalisation of the Bank is a simple yet confusing concept. To understand this concept, we must know certain things about Banks and their history. Let us start by dividing the Nationalisation Periods into three segments. 

Segment I

This segment deals with the year from 1770 to 1947. In the 1770s, the Banking system began in the country with the “Bank of Hindustan”. This bank worked for a while and put a hold on all its operations by 1832. During this segment of time, more than 600 banks came into existence. But just like the Bank of Hindustan, many other banks stopped operating. In 1921, the Imperial Bank of India came into being, which was the product of three merged banks- Bank of Bombay, Bank of Madras, and Bank of Bengal. In 1955, Imperial Bank was converted into the State Bank of India.  

Segment II

This segment deals with the year from 1947 to 1991. Private ownership of Banks was a huge concern for the government, during this period. Due to private ownership, it was found out that the people from various corners of the country were still dependent on high-interest loan facilities- lending from unorganised sectors. Hence, the government decided to Nationalise the Banks. According to the government, this action would help the people get secure financially. The action came into force through the infamous Banking Regulation Act of 1969. Under this act 14 Banks were Nationalised from 1969 onwards. Again, the year 1980 turned 6 other banks into Nationalised Banks. The nationalised banks in India helped the government to widen out the banking facility to various corners of the country and increase its efficiency. In addition, this action helped secure the economic condition of the nation. 

Segment III

This segment deals with the latter half of the post-independent period from 1991 to 2019. Many private banks came into existence during this period. The initial years of this period are marked by privatisation and the development of various economic policies, in this regard. The banking sector became answerable to the Reserve Bank of India, and is regulated and monitored these Banks regularly. 

List of Banks

State Bank of India is a nationalised bank in India since 1959. The subsidiaries of SBI were merged into the State Bank of India, between 2008 and 2017. The initial list of Nationalised banks in India has 14 Banks, namely:

1. Allahabad Bank
2. Bank of Maharashtra
3. Canara Bank
4. Indian Bank
5. Bank of India
6. Central Bank of India
7. Bank of Baroda
8. Dena Bank
9. Syndicate Bank
10. Union Bank of India
11. Punjab National Bank
12. United Bank of India
13. UCO Bank
14. Indian Overseas Bank.

The next list of Nationalised Banks in India is accustomed to the banks nationalised in 1980. 

1. New Bank of India
2. Corporation Bank
3. Vijaya Bank
4. Punjab and Sind Bank
5. Andhra Bank
6. Oriental Bank

Conclusion

Banks are an integral part of an Economy. It helps in the growth of the economy. However, in the pre-independent period, the banks were privately owned and were hampering growth and stability. Therefore, the government came up with the Bank Regulation Act in 1969, which nationalised banks in India. The transfer of regulation, power, and the proprietorship from various commercial banks into the hands of the government sector of India is known as the Nationalisation of Banks. Nationalised Banks in India came into being first in the pre-independent period. The most intense period of Nationalisation of Banks in India was between 1949 and the 1990s. Initially, the nationalised bank list counted 14 days. State Bank of India was nationalised in 1959. In 1980, 6 more banks joined the nationalised bank list of India.