By Raj Kishore Samantroy*

On July 19, 1969, the then Prime Minister Indira Gandhi nationalized 14 major commercial banks, transforming India's financial landscape. This move made banking services accessible to everyone, promoting economic growth and social fairness. In the second phase, on April 15, 1980, six more banks were nationalized.

As we celebrate this historic event, we must recognize the importance of keeping our nationalized banks strong. Over the decades, these banks have been crucial in building the nation and ensuring economic stability.

Nationalised banks have significantly promoted financial inclusion. Before nationalization, banking mainly served urban areas and the wealthy. Now, thanks to these banks, millions in rural and semi-urban areas can access banking services. Initiatives like Jan Dhan Yojana have opened millions of zero-balance accounts, bringing the unbanked population into the formal financial system.

These banks also support agriculture and small industries. They provide credit to farmers, artisans, and small business owners, empowering them and fostering self-reliance.

During economic crises, like the COVID-19 pandemic, nationalized banks have been lifelines, implementing government schemes, extending credit to businesses, and offering loan moratoriums. Their vast network helped quickly distribute relief funds, proving their value in crisis management.

Additionally, nationalized banks finance large-scale projects in energy, transportation, and healthcare, crucial for long-term economic growth and improving citizens' quality of life.

In recent years, nationalized banks have often outperformed private banks in key areas. They focus on sustainable growth, regulatory compliance, and national priorities, leading to strong financial health and customer satisfaction. Innovations in digital banking have also enhanced their competitiveness.

Some argue for privatization for efficiency and profit. However, nationalized banks' mission includes social welfare, economic stability, and equitable development. Their public sector ethos ensures they remain committed to national priorities, unlike profit-focused private banks.

In conclusion, nationalized banks are vital pillars of our socio-economic fabric, embodying principles of equity, inclusivity, and national service. As we celebrate Bank Nationalisation Day, let us commit to preserving and strengthening these institutions. Their continued growth is crucial for a prosperous, inclusive, and self-reliant India. With their excellent performance and dedication to national development, nationalized banks are leading the way in the banking sector, ensuring a brighter future for all.

The author is Secretary, All India Punjab National Bank Pensioners’ Association, Cuttack Circle.

DISCLAIMER: The views expressed in the article are solely those of the author and do not in any way represent the views of Sambad English.