Question

What does the term 'nationalisation of banks' mean?

What is meant by the nationalisation of commercial banks?

Answer 1

Nationalisation means the taking over of a commercial bank by the government. The process of nationalisation of banks began when the Reserve Bank of India was nationalised on 1 January 1949. These banks work according to national priorities rather than the profit motive of private entrepreneurs.

Answer 2

The nationalisation of banks means taking over the ownership and management of commercial banks by the government.