How many banks were nationalized in India in 1980?

Question

UnlockIAS · Accepted Answer

Correct — B, 6 banks. On 15 April 1980, the Government of India nationalized 6 more private commercial banks (each with deposits above a prescribed threshold), the second round of bank nationalization after the first round in 1969.

Why the other options are wrong — (a) Not the count for either nationalization round — 1969 nationalized 14 banks and 1980 nationalized 6; 4 matches neither figure.  (c) 14 is the count from the FIRST round of nationalization in 1969, not the 1980 round — a classic mix-up between the two rounds.  (d) 20 is the cumulative total of nationalized banks after BOTH rounds (14 in 1969 + 6 in 1980), not the number nationalized in 1980 alone.

Concept: India nationalized commercial banks in two rounds under the Banking Companies (Acquisition and Transfer of Undertakings) Acts: 14 major banks in 1969 and 6 more in 1980, bringing banking largely under state control to redirect credit toward priority sectors (agriculture, small industry) and expand rural branch networks.

State PCS 2023 Q86 — Economy PYQ with Answer

State PCS 2023 Q86 — Economy PYQ with Answer