Which among the following Act laid down the conditions for the nationalization of Banks?
- AOption (a)
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- BOption (b)
Reserve Bank of India (Transfer to Public Ownership) Act
- COption (c)
Banking Regulation Act
- DOption (d)
None of these
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Correct answer
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
Why this answer is correct
The correct answer is option1.
Key Points
- Nationalisation of banks was implemented under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970.
- The ordinance came into force on 19 July 1969,
- To serve better the needs of development of the economy in conformity with national policy objectives.
Additional Information
- It was on July 19, 1969, when then prime minister Indira Gandhi announced the nationalisation of 14 commercial Indian banks with deposits of over Rs 50 crores.
- On 24 Sep 1969, National Institute of Bank Management (NIBM) was set up.
- Reserve Bank of India -
- It was established on 1st April, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
- The central office of the Reserve Bank was initially located in Kolkata.
- Which was permanently shifted to Mumbai in 1937.

