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Bank Nationalisation in India by Indira Gandhi

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Bank Nationalisation

In 2008 when the world faced a financial crisis, India was relatively insulated. One important reason for this was the fact that our banks had been nationalised by Indira Gandhi in July 1969. This had electrified the country and immediately led to vastly expanded credit flows to farmers and small businesses. Public sector banks have also helped successive Governments in being able to fulfill social objectives, especially by taking modern banking to the remotest parts of the country, integrating the whole population into the organized and modern economy, paving the way for such innovations as self-help groups, direct benefit transfers, and mobile banking.