Nationalisation of Banks in India Objective Type Questions (1 Mark)

Question 1.
The first bill favouring nationalisation of hank was presented on:
(a) 23rd August 1953
(b) 23rd August 1963
(c) 23rd August 1973
(d) 23rd August 1983
Answer:
(b) 23rd August 1963

Question 2.
The name of the lady who presented the first bill in favour of nationalisation was:
(a) Mrs Subhandra Joshi
(b) Mrs Jyoti Rani
(c) Mrs Soniya Gandhi
(d) None of these
Answer:
(a) Mrs Subhandra Joshi

Question 3.
The ordinance nationalising the bank was issued on ………
(a) 19th July 1996
(b) 19th July 1989
(c) 19th July 1969
(d) 19th July 1998
Answer:
(c) 19th July 1969

Question 4.
In the first instance ………. major banks were nationalised.
(a) 14
(b) 16
(c) 18
(d) 20
Answer:
(a) 14

Question 5.
The government nationalised 6 more banks through an ordinance dated ………..
(a) 18th April 1970
(b) 19th April 1980
(c) 19th April 1970
(d) 18th April 1980
Answer:
(c) 19th April 1970

Question 6.
Which of the following banks is a nationalised bank in India? (UP 2019)
(a) Yes Bank
(b) Dena Bank
(c) Axis Bank
(d) None of these.
Answer:
(b) Dena Bank

Nationalisation of Banks in India Definite Answer Type Questions (1 Mark)

Question 1.
When were 14 Banks nationalised in India? (UP 2016, 17)
Answer:
19th July 1969.

Question 2.
What is the number of nationalised banks in India?
Answer:
14.

Question 3.
Which is the number of banks which ordinance issued by the President of India on 16th April 1980?
Answer:
6.

Nationalisation of Banks in India Very Short Answer Type Questions (2 Marks)

Question 1.
Write names of those banks which were nationalised in April 1980.
Answer:

1. Oriental Bank of Commerce
2. Vijaya Bank
3. Punjab and Sindh Bank
4. Corporation Bank
5. New Bank of India
6. Andhra Bank.

Question 2.
Write names of those banks which were nationalised in 1969.
Answer:

1. Central Bank of India
2. Bank of India
3. Punjab National Bank
4. Bank of Baroda
5. United Commerical Bank
6. Canara Bank
7. United Bank of India
8. Dena Bank,
9. Union Bank of India
10. Allahabad Bank
11. Syndicate Bank
12. Indian Bank
13. Indian Overseas Bank
14. Bank of Maharashtra.

Question 3.
Give any two advantages of Nationalised Banks. (UP 2015)
Answer:
Two advantages of nationalized banks are as follows:
(i) Inter-Bank competition can be ended: There is unnecessary competition among Indian Banks which benefits no one. If all the banks are nationalised, this necessary competition will automatically come to an end.

(ii) Development of Specialised Banks: There is at present acute shortage of agricultural, industrial and Indian Foreign Exchange banks in the country. If the entire banking industry is nationalised, the government will surely take steps to a developed specialised banking institution in the country.

Question 4.
Give any two disadvantages of nationalised banks. (UP 2015, 18)
Answer:
Two disadvantages of nationalised banks are as follows:
(i) Violation of Financial Secrecy: The third argument against bank nationalisation is that it will violate the financial secrecy of individual depositors and of institutions.

(ii) Payment of Compensation: The Government will need substantial funds to compensate the shareholders of private banks if it decides to nationalise them. The amount needed by the Government is estimated to be around Rs. 100 crores.

Question 5.
Mention two main objectives of nationalisation of banks in India. (UP 2019)
Answer:

1. To eliminate the concentration of economic power in few hands.
2. To extend banking facilities to unbanked rural Areas.

Nationalisation of Banks in India Short Answer Type Questions (4 Marks)

Question 1.
What do you understand by the nationalisation of banks?
Answer:
After independence, the people started thinking on the lines of nationalisation, for overcoming the problems and defects of the trade and industries. The banking institutions were one of them, which despite social control could not satisfy the needs of the people. The development of banks was very erratic and the Indian money market was not organised.

The Indian commercial banks did not open their branches in rural areas of provided loans only to big industrialist and businessmen. The really needy persons such as farmers, cottage and small industries, artisans etc. were deprived of this facility. Because of all these problems, the demand for nationalisation of banks became greater. The demand for nationalisation the banks was intensified, with the nationalisation of Imperial Bank.

Question 2.
Give some arguments in favour of nationalisation of hanks.
Answer:
The following arguments were advanced in favour on nationalisation:
(a) Balanced Growth of Banks: At present, the private banks operate only in those areas where they get good business, hence, generally all the banks are in towns and big cities. With the nationalisation of banks, the government will open the branches in those areas which do not have banking facilities. In this way, by nationalising the banks they would have balanced growth.

(b) Improvement of Efficiency: The Government banks in view of their vast resources are able to attract competent, trained and experienced staff more effectively than the private banks. Consequently, the level of operational efficiency is bound to be higher in Government banks in comparison to private banks.

(c) Utilisation of Bank Credit in National Interest: If the banks are allowed to be operated by private individuals, then the bank’s credit shall not be used in the interests of the nation. On the contrary, the bank’s credit will be utilised in the interests of these individuals who control the banks.

(d) Business Fluctuations can be checked: As is well known, a capitalist economy is all the time affected by business fluctuations. The slump and the boom follow each other at regular intervals. These fluctuations cause untold harm to the economy of the country. The government can keep effective control only if the banks are fully nationalised.

Question 3.
Give some arguments against nationalisation of banks.
Answer:
The following arguments were advanced against the nationalisation of banks:
(a) Fall in the efficiency of services: At present, the banks provide efficient services on a lower rate to customers due to the competition among the banks. After nationalization the banks would not be able to provide these kinds of facilities.

(b) Violation of Financial Secrecy: The third argument against bank nationalisation is that it will violate the financial secrecy of individual depositors and of institutions.

(c) Payment of compensation: The Government will need substantial funds to compensate the shareholders of private banks if it decides to nationalise them. The amount needed by the Government is estimated to be around Rs. 100 crores.

(d) Lack of Elasticity: The quality of elasticity is one of the important aspects of the banking system. With the nationalisation of banks, they will lose the quality of elasticity because they will have to take prior permission from his high officers before taking any decision.

UP Board Solutions for Class 10 Commerce