50 Years of Banks Nationalization the Shorcomings and Challenges

This paper is aimed at an overview In India, Nationalization of banks was done in 2 phases. The initial phase of nationalization commenced in the year 1955 when the former Imperial Bank of India became the State Bank of India with the Act of parliament. During the year 1959, 7 subsidiaries were nationalized, the second phase of nationalization started in the year 1969 with the nationalization of 14 main commercial banks in India. In the year 1980, six more commercial banks were nationalized & became public sector banks and recent the50 years of nationalization of banks. The paper discuss and concludes rationale for nationalization, the current challenges and the way forward.