Q.(a) Explain the objectives of nationalization of Commercial banks.
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Start your 14-day free trial to unlock the full solution →(a) Nationalisation of commercial banks aimed at social control of banking — mobilising savings, spreading rural banking, priority-sector lending and reducing economic concentration. (b) The Foreign Trade (EXIM) Policy 2015-2020 sought to nearly double exports, raise India's world-trade share, and simplify and incentivise trade through MEIS and SEIS.
(a) Objectives of nationalisation of commercial banks (in the Tamil Nadu HSC Class-11 Economics syllabus). Fourteen major banks were nationalised in 1969 and six more in 1980. The objectives were:
- Mobilisation of savings — to gather the savings of the public, including rural and small savers, on a large scale.
- Expansion of banking to rural/backward areas — to open branches in unbanked and rural regions and reduce dependence on moneylenders.
- Priority-sector lending — to direct credit to agriculture, small-scale industries, exports and weaker sections of society.
- Reducing concentration of economic power — to stop a few big industrialists from controlling bank funds and to prevent misuse of credit.
- Removing regional imbalances — to spread banking and credit evenly across states and regions.
- Social control and planned development — to make banking serve national planning and social welfare rather than only private profit.
- Developing the banking habit — to encourage people to save through banks and promote financial inclusion.
(b) Salient features of the EXIM (Foreign Trade) Policy 2015-2020:
- Export target — aimed to raise India's goods-and-services exports to about USD 900 billion by 2020 and to increase India's share in world trade from about 2% to 3.5%.
- New incentive schemes — merged earlier export-incentive schemes into two: the Merchandise Exports from India Scheme (MEIS) for goods and the Services Exports from India Scheme (SEIS) for services, giving duty-credit scrips.
- Support to 'Make in India' — encouraged domestic manufacturing and value addition for exports. …
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