Do you think that all the Banks in India should be Nationalized?

Arguments for :

1. One of the reasons for nationalizing twenty Banks was that they had started giving loans to speculators and the Bank Managers and others used to become sleeping partners. As a result of it, the prices of different commodities shot up. In order to curb the rising prices, it was necessary to nationalize big banks. But if the small banks indulge in the same type of malpractices, it will definitely be harmful to the nation.

2. By nationalizing all the banks the Government will be able to utilize the public money which is deposited in the banks for public welfare ; the Government will be able to implement welfare schemes.

3. By nationalizing all the banks integrated policies can be framed and more rural banks can be opened. Moreover, the banks can also be forced to adopt villages and take the responsibility of their development. In this manner, overall economic position of the country will become better.

Arguments against:

1. If all the banks are nationalized, banking will become inefficient in India. Whenever a private institution is taken over by the Government, the workers become indifferent to customers because their own services are secure. Inefficiency in the bank would disappoint the customer and so it may become unpopular.

2. India’s economy is Mixed economy because we want that the private sector should compete with the public sector. They think that this competition will help in providing better service and better facilities. They want the Public Sector banks to compete with Private Sector Banks. If all the banks are nationalized this competition will disappear.

3. By nationalizing all the banks, Government will create fear in the minds of the people. Majority of the people in India are illiterate they may start thinking that their savings will be known to the Government and the Government may take away their money at any time. This loss of faith in the banking system will be dangerous for our economy.