How many major banks were nationalised by the government in 1969?

Correct option is B

​The correct answer is (b) 14

Explanation:

On 19th July 1969, the Government of India, under Prime Minister Indira Gandhi, nationalized 14 major commercial banks. These banks were chosen based on having deposits of ₹50 crores or more..

Information Booster:

Objectives of Bank Nationalization (1969):

1. To promote financial inclusion – Extending banking services to rural and semi-urban areas.
2. To direct funds towards priority sectors – Encouraging lending to agriculture, small industries, and weaker sections.
3. To reduce private monopolies in banking – Shifting control from a few industrialists to the government.
4. To support planned economic development – Aligning banking operations with the government’s economic policies.

Banks Nationalized in 1969:Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India. United Bank of India

Later, on 15th April 1980, six more banks were nationalized, bringing the total to 20 nationalized banks in India.

Public Sector Banks in India:

As of now, India has 12 Public Sector Banks (PSBs) due to the consolidation of several banks to strengthen the banking sector. This reduction from 27 PSBs in 2017 was part of the government's banking sector reform strategy.

List of 12 Public Sector Banks (PSBs) in India (as of 2024):

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of Baroda (BOB)
4. Canara Bank
5. Union Bank of India
6. Indian Bank
7. Bank of India
8. Central Bank of India
9. Indian Overseas Bank
10. UCO Bank
11. Bank of Maharashtra
12. Punjab & Sind Bank

Major Mergers in the Banking Sector (2019-2020):

• Punjab National Bank (PNB) + Oriental Bank of Commerce (OBC) + United Bank of India → Merged into PNB
• Canara Bank + Syndicate Bank → Merged into Canara Bank
• Union Bank of India + Andhra Bank + Corporation Bank → Merged into Union Bank of India
• Indian Bank + Allahabad Bank → Merged into Indian Bank
• Bank of Baroda + Vijaya Bank + Dena Bank → Merged into Bank of Baroda (2019)