This day, that year 14 banks were nationalised under the regime of Prime Minister Indira Gandhi.
On July 19, 1969, 14 major lenders that accounted for 85% of bank deposits in the country at that time were nationalised. In 1980, six more banks were nationalised.
These banks with deposits of over Rs 50 crores nationalised ' to serve better the needs of development of the economy in conformity with national policy objectives'.
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.
On February 10, 1970 the Supreme Court held the Act void mainly on the grounds that it was discriminatory against the 14 banks and that the compensation proposed to be paid by Govt was not fair compensation.
A fresh Ordinance was issued on February 14 which was later replaced by the Banking Companies (Acquisition and Transfer of Undertakings ) Act, 1970.
Full list of banks nationalised:
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 1980, six banks to be nationalised were Punjab and Sind Bank, Vijaya Bank, Oriental Bank of India, Corporate Bank, Andhra Bank and New Bank of India.
