The major objectives of nationalisation of commercial banks as set out by the prime minister may be summarised that removing he control over commercial banks by few large industrial houses. Providing adequate credit to the hitherto neglected sectors such as agriculture, small business, small scale and professional. To introduce prorfessional management in commercial banking. To provide adequate training and reasonable service conditions for bank employees. The banls have raally lived upn to the expectations of parliament and the prime minister.
The commercial banks have become pewerful institutions contributing for agricultural and rural development and also he upliftment of weaker sections of he rural community. Some of he singnificant achievements are rapid branch expansion expension, of rural credit, strengthening of the co-operative sector and support to village and rural industries. Thecommerial banks in India had organised themselves along the lines sand patterns of Brithish banks. They are more comfortable with rrade and large industrialhouses than with the agriculture sector and small industries. A numberof changes has taken place in mral areas after commencement of he planning era. The concept of rural developmental has nether been concise consistet.
Ganndhiji’s ideas are different from those of Jawaharlal Nehru and they are again different from the ideas of Indira Gandhi.
These three dominant personalities, who played significant role in the economic development of the country, have left their imprints. Tumultuous and far reaching changes have taken place after the nationalisaion of commrcial banks. Even before 1969, agriculture and allied acivities were experiencing rapid growth under suggested five year plans. The national credit council ponied out a large credit gap in the rural economy. It has suggested measures to improve and monitor the flow of creit to the rural sector and also recommended a multi agency approach instead of depending on the co-operativ credit societies alone. While th banks prior to nationalisation wer reluctant to enter rural areas and lend for rural acitvities in support of various governmental programmes.
Even during the Biritish rule, he Government had recognised the importance of agriculture and developed the co-opertive organisations to take care of agricultural credit. At that point of time and perhaps upn to 1975, rural development was seen merely as aricultural development.
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