53rd ANNIVERSARY OF BANK NATIONALISATION
mohan p
On 53rd Anniversary of Bank Nationalisation.
19th July is a very significant day in the history of banking sector in our country.
It was,at 8.30 pm on the night of July 19, 1969, then prime minister Indira Gandhi announced to the nation that 14 major commercial banks which controlled 85 percent of bank deposits in the country, had been nationalised. Banks with deposits of at least Rs 50 crore each were nationalised.
The ideological argument given was that the banks served merely the interests of crony capitalists and hardly bothered with the vast farm sector. The failure of over 350 private banks since Independence leading to depositors losing all their money, also gave it a populist underpinning. In reality, of course, there was substantial politics at play between the prime ministers and dissidents in the party opposed to her. Eventually, the move was considered a masterstroke by her.
Indira Gandhi highlighted the purpose of nationalisation - removing control of the few; providing adequate credit for agriculture, small industry and exports; giving a professional bent to bank management; encouraging a new class of entrepreneurs - during her speech.
In 1969, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Central Bank of India, Canara Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank and United Bank of India were nationalised.
In continuation in 1980, another six banks nationalised were Punjab and Sind Bank, Vijaya Bank, Oriental Bank of India, Corporation Bank, Andhra Bank and New Bank of India.
These Banks have started chartering a new path with social orientation.Common man got an opportunity to deal with PSBs and enjoy the facilities so far denied to them.
Indian Banking industry in conformity with national policy objectives has reoriented from Class Banking to Mass Banking approach to enhance its outreach to bring the marginalized and excluded population into its fold for mainstream economic activity.
The branch expansion was accelerated and institutional credit flow to poor rural households reached new heights to relieve them from the clutches of usurious informal money lenders.
Later,among these banks few PSBs have been merged with others ,to reduce number of PSBs lesser to create bigger banks.
Attempts are there now to turn the clock back by privatising PSBs. While whispers on privatisation of public sector banks (PSBs) have been in the air for the past few years since some of them have not been in the best of health, the February 2021 Union Budget, for the first time, spoke about privatising two such banks. Even before that, the government had committed to privatise IDBI Bank Ltd
Serving employees -yes,retirees too- are on struggle now to protect and strengthen public sector banks and to stop move on privatisation of banks.How far we can succeed is to be seen.
Anyway,as far as bank retirees are concerned the move of GOI to privatise PSBs may not be a good thing,as in the case of serving employees.
Especially while, we are eagerly waiting to see resolution of our long pending genuine demands of updation of pension as well as DA related issues etc.
Let us hope for best!
kds nair
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antony rudolf
mohan p
bhaskara sarma
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