Question

Bank nationalization case relates to the nationalization of

• A. some banks by the government of India after economic liberalization in 1991.
• B. some banks under a law during the Prime Ministership of Mrs. Indira Gandhi.
• C. all the private Indian Banks during the Prime Ministership of Narasimha Rao.
• D. all the private Indian Banks during the Prime Ministership of Mrs. Indira Gandhi

Hint:

1969 = first major bank nationalization; 1980 saw another round covering more banks.

Answer 1

The Correct Option is B

The bank nationalization case refers to the 1969 decision by the Government of India under Prime Minister Indira Gandhi to nationalize 14 major commercial banks.
This move was done through an ordinance, later replaced by an Act of Parliament, with the aim of extending banking facilities to rural areas and supporting economic development.
Option (a) is incorrect because 1991 was the year of economic liberalization, which encouraged privatization rather than nationalization.
Option (c) and (d) are incorrect as not all private banks were nationalized—only selected large banks were targeted.
Therefore, option (b) is correct.