While celebrating 52 years of Nationalisation, we have a government led by those people who along with their party opposed Nationalisation and now want to privatise everything. It is important to look at History and plan for the future.
When India attained Independence in 1947 it inherited a weak, desperate and unwieldy banking structure. Other than the Imperial Bank of India, there were many Indian joint stock banks, but they did not have adequate capital and due to unhealthy business practices 205 banks went out of business between 1947 and 1951.
The Banking Companies Act 1949 was amended 10 times between 1950 and 1967 in a bid to strengthen the banking system. As a result between 1960 and 1969 there were 48 compulsory mergers, 20 voluntary amalgamations, 17 mergers with the State Bank of India, 125 transfers of assets and liabilities – all involving 210 banks. The number of banks was 567 in 1951, which came down to 295 in 1961 and finally to 91 in 1967.
Read the full history here-