Which among the following Act laid down the conditions for the nationalization of Banks?
- ((a))
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- ((b))
Reserve Bank of India (Transfer to Public Ownership) Act
- ((c))
Banking Regulation Act
- ((d))
None of these
Show Answer
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
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.



