SSC Economics Sample Paper NCERT Sample Paper-5

  • question_answer
    Which of the following was not a reason for nationalisation of Banks in 1969 and 1980?

    A)  Misuse of credit

    B)  Tendency to ignore small industries and agriculture sector

    C)  Fear of concentration of economic power in the hands of few industrialists

    D)  None of these

    Correct Answer: D

    Solution :

    [d] In 1969, Prime Minister Indira Gandhi nationalised 14 banks that controlled 70 percent of India's deposits. Six more banks were nationalised in 1980. Indira Gandhi had been under pressure from older, more experienced hands within the party (known as the Syndicate) who wanted banks to be nationalised to neutralise them. Their argument was that the banking sector was not working rapidly enough in spreading credit availability across the country.

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