In 1969, how many private banks were nationalized?

Appeared in: DSSSB - 29 August 2019 (Shift-1)

Explanation

On July 19, 1969, the Government of India nationalized 14 major privately-owned commercial banks.
This decision was made by the government of Prime Minister Indira Gandhi.
The primary objective was to gain greater control over credit delivery to serve social and economic goals, such as funding agriculture and small-scale industries.
The criterion for nationalization was that the banks had deposits of over ₹50 crores.

Option A: The number of banks nationalized in the first phase in 1969 was not 10. This is an incorrect figure for this historical event.
Option C: The number of banks nationalized in 1969 was not 8. This is an incorrect count.
Option D: The number of banks nationalized in 1969 was not 12. This is an incorrect figure.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain History of Banking in India: Nationalization as background academic context rather than a clinical decision trigger.
This is a general knowledge question. Understanding major economic policies like bank nationalization is crucial for general awareness, which is often a component of competitive examinations.
The 1969 nationalization fundamentally reshaped India's economic landscape by prioritizing credit for agriculture and rural development, which has long-term implications for public health and social determinants of health.
This policy led to a massive expansion of bank branches in rural areas, increasing financial inclusion and access to government welfare schemes for millions of people.

How to Approach the Question

This is a factual recall question based on modern Indian history and general knowledge.
First, identify the key elements in the question: the event (nationalization of private banks) and the year (1969).
Access your knowledge base regarding major economic events in post-independence India.
Recall the specific number of banks associated with the 1969 nationalization event.
Compare the recalled number with the given options to select the correct one.
If unsure, try to eliminate options or recall related facts, such as the subsequent nationalization in 1980, to avoid confusion.

Concept Tested & Keywords

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Practise the full DSSSB - 29 August 2019 (Shift-1)

Attempt every question from this paper in a timed mock, then review the full solution for each one.