Need of banks nationalization:

                The developmental goals of financial intermediation were not being achieved other than for some favoured large industries and established business houses. Whereas industry’s share in credit disbursed by commercial banks almost doubled between 1951 and 1968, from 34 per cent to 68 per cent, agriculture received less than 2 per cent of total credit. Other key areas such credit to exports and small-scale industries were also neglected. The stated...

Before going to know what exactly the scandal is first one need to understand the government policies and economic situations at that time. That was the period of liberalization, the economists and the politicians were fighting on the liberalization issue. In the early 1990’s every bank in India had to maintain particular amount of their deposits in government bonds.  This ratio was called statutory liquid ratio (SLR). It can be calculated as total demand/total liability x100. The objective...

Every one thinks that the economic liberalization in India started in 1991. but it is partially. the roots of liberalization lies in the early years of 80's. but india's democratic policies took some time to implement, while the neighboring country China successfully implemented in the early 80's with the autocratic govt. we used to get 3-4% of growth rate before 1980. the scene completely changed after that. the government of India started to loosening the policies in "license permit raj" by...