How many banks were nationalised in the second round of bank nationalisation in April 1980?
- A.Four
- B.Six
- C.Eight
- D.Fourteen
Correct answer
Explanation
The correct answer is B, six. On 15 April 1980 the Government nationalised six more private banks, this time using a deposit cut-off of ₹200 crore. One of the six, New Bank of India, was later merged into Punjab National Bank in 1993, which is why the count of nationalised banks afterwards is often given as nineteen.
Option A, four, and option C, eight, match no round of nationalisation and are there to test whether the cut-off and the count have been learnt together. Option D, fourteen, is the number taken over in the first round on 19 July 1969, when the cut-off was deposits of ₹50 crore or more. The pattern to remember is simple: 1969, fourteen banks, ₹50 crore; 1980, six banks, ₹200 crore; and the State Bank of India was already in public hands from 1955, so it appears in neither list.
Read the full article: History of Banking in India: Nationalisation, RBI and PYQs
Practice Questions
View allIn which of the following years did the fourteen major Indian scheduled commercial banks get nationalised in India?
- A.1969
- B.1970
- C.1972
- D.1950
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On 19 July 1969 the Government of India issued an ordinance taking over the fourteen largest Indian scheduled commercial banks, those whose deposits stood at ₹50 crore or more.
Read the full explanation →Which among the following is the oldest joint stock bank in India?
- A.Allahabad Bank
- B.Bank of Baroda
- C.Yes Bank
- D.Punjab National Bank
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It was founded in 1865 and is remembered as the oldest joint stock bank in India, a joint stock bank being one owned by shareholders rather than by a partnership of agency houses.
Read the full explanation →The Reserve Bank of India was fully nationalised and owned by the Government of India in which of the following years?
- A.1947
- B.1948
- C.1949
- D.1950
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The Reserve Bank opened in 1935 as a shareholders' bank with privately held share capital.
Read the full explanation →When was the Indian Rupee de-linked from the Pound Sterling?
- A.1975
- B.1947
- C.1982
- D.1963
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The rupee was tied to the pound sterling from colonial times and stayed pegged to it after independence. In 1975 the link was cut and the rupee was tied instead to a basket of currencies of India's major trading partners, with the Reserve Bank fixing the daily rate.
Read the full explanation →Which commission recommended the establishment of the Reserve Bank of India?
- A.Narasimham Committee
- B.Hilton Young Commission
- C.Chelliah Committee
- D.Sivaraman Committee
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Formally the Royal Commission on Indian Currency and Finance, it reported in 1926 that the control of currency and of credit should not be split between the Government and the Imperial Bank but placed in one central bank.
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