The banks nationalised on 19 July 1969 were those holding deposits of at least:
- A.Rupees 25 crore
- B.Rupees 50 crore
- C.Rupees 100 crore
- D.Rupees 200 crore
Correct answer
Explanation
The correct answer is B, Rupees 50 crore. The cut off used in the first round of nationalisation was deposits of fifty crore rupees or more as on the relevant date, and fourteen banks crossed it. The purpose stated in the preamble was to control the commanding heights of the economy and to direct credit to agriculture, small industry, exports and the weaker sections.
Option A, twenty-five crore rupees, matches no round. Option C, one hundred crore rupees, is a figure candidates invent as a midpoint. Option D, two hundred crore rupees, is the threshold of the second round in 1980, when six banks were nationalised. The pair to memorise is fifty crore rupees with fourteen banks in 1969 and two hundred crore rupees with six banks in 1980; papers often give the year and ask the amount, or give the amount and ask the number.
Read the full article: Bank Nationalisation and Mergers in India: 1949 to 2020
Practice Questions
View allIn which year was the State Bank of India created following the passage of the Imperial Bank of India into state ownership?
- A.1947
- B.1965
- C.1955
- D.1950
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The All India Rural Credit Survey Committee found that rural credit needed a bank with a nationwide branch network, so Parliament passed the State Bank of India Act, 1955, and the Imperial Bank of India was taken over and renamed the State Bank of India with effect from 1 July…
Read the full explanation →Small Industries Development Bank of India (SIDBI) was established in which year?
- A.1990
- B.1988
- C.1992
- D.1994
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SIDBI was set up under the Small Industries Development Bank of India Act, 1989 and began operations in 1990 as the principal financial institution for the promotion, financing and development of micro, small and medium enterprises.
Read the full explanation →How many commercial banks were nationalised in the first round on 19 July 1969?
- A.Six
- B.Eight
- C.Fourteen
- D.Twenty
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On 19 July 1969 the government promulgated an ordinance nationalising fourteen major commercial banks, each of which held deposits of fifty crore rupees or more.
Read the full explanation →In the second round of bank nationalisation in April 1980, how many banks were nationalised?
- A.Four
- B.Six
- C.Seven
- D.Eleven
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On 15 April 1980 six private banks whose deposits were two hundred crore rupees or more were nationalised: Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank.
Read the full explanation →The Reserve Bank of India was nationalised with effect from:
- A.1 April 1935
- B.1 January 1949
- C.1 July 1955
- D.19 July 1969
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The Reserve Bank of India began as a shareholders' institution in 1935 and was taken into full government ownership from 1 January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948.
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