Nationalized Banks In India
A nationalization is an act of taking an industry or an asset into public ownership of a national government. Nationalization refers to the private asset being transferred to the public sector to be operated by or owned by the state. Nationalization takes place when the government takes control over the assets of a corporation usually by acquiring the majority stake. Nationalization of banks has contributed in a big way to the economy.
Objectives of Nationalized Banks in India:
Some of the main objectives of nationalized banks are discussed below:
- Social welfare: the banks were focused towards the development and expansion of small and medium industries and the agricultural sector. These banks provide the necessary funds for their expansion and growth.
- Controlling private monopolies: before nationalization, the banks were controlled and operated by corporate families. In order to ensure smooth supply of credit and cease private monopolies, the government took over the banks for the betterment of the nation.
- Expansion of banking: these banks expanded the banking base to previously un-banked areas.
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