Nationalised to expand the economy. After the independence,

Nationalised banks in India works to
provide social welfare to the public. They work to direct the funds to the underprivileged
and various sectors such as agricultural sector and small industries for their
economic development since these are the sectors that contribute mostly to the
national income. Nationalised banks in India helps to control the private
monopolies and also helps in reducing the regional discrepancies. They work to
provide banking facilities to the major rural areas of the country.

            A
major criticism about nationalisation was that some banks were not nationalised
so that the businessmen may not have suffered. The government contended that
the nationalised banks had maximum deposits with them and the other banks were
not in a position to influence the economy of the country. But there was a need
to have complete control over the banks in order to expand the economy.

            After
the independence, when the people of India were deprived of banking facilities
especially in the under developed regions of the country, it was the
nationalised banks that worked to escalate the banking facilities across the
country.

            The
results of nationalisation of banks in India can be summarized as follows:

Ø  After nationalisation, the banking
industry in India has made major progress and provides banking facilities to
every part of the country.

Ø  The public sector banks has played a
major role in organizing, saving and extending credits mostly in favour of the
weaker sections of the society.

Ø  It has aroused the need for using
banking services among the rural and remote areas of the country.

Ø  It has helped in the quick transfer
of funds from one place to another.

Ø  It has provided employment
opportunities for the educated youth of the country.

Ø  It has made credit available to the
people such as agricultural labours and small traders at low interest rate.

Ø  It has helped to free the rural poor
from the hands of the lenders.

Ø  It ensured the supply of credit to
many industrial activities.

Ø  It has ensured the use of funds for appropriate
and desirable purposes in the society.

Ø  It has helped to remove regional difference
in the economic development.

Ø  It has helped in the implementation
of various welfare measures by the government.