Introduction

There were 6 Banks nationalised in 1980. The Nationalisation of Banks refers to when the government purchases 50% of stakes. It is considered the majority for a Private Bank, which is owned by a Private Firm.

Main Content

In 1980, the Banking Companies Ordinance (Acquisition and Transfer of Undertakings) was passed that allowed for the acquisition and transfer of undertakings of a specific Bank.

It was done according to their resources, size, coverage, and organisation in mind, to meet their assurance beneficially and progressively.

The Nationalisation of Banks happened for promoting economic and welfare development.

In 1969, the Indian Government nationalised fourteen sizable Private Banks, which included the Bank of India, which was one of the major Banks.

Later, in 1980, the Indian Government Nationalised six more independent Banks, and many lenders of the Indian Economy were represented by these Banks.

In the year 1980, there were only six Banks nationalised, following are the names of those Banks:

1. Andhra Bank Limited

2. Punjab and Sind Bank Limited

3. Corporation Bank Limited

4. Vijaya Bank Limited

5. Oriental Bank of Commerce Limited

6. New Bank of India Limited

Conclusion

The Nationalisation of Banks took place in the year 1980, it was when passing a Banking Company Ordinance. It was done by the acquisition and transfer of undertakings. Later, the idea of Nationalising the Banks proved helpful to the people of India, and the Indian Government. Moreover, in 1993, the New Bank of India merged with the PNB – Punjab National Bank.