FINANCIAL OR BANKING SECTOR REFORMS OR PHASE III :
This phase has introduced many more products and facilities in the banking sector in its reforms mea¬sure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking are introduced. The entire system became more convenient and swift. Time is given more impor¬tance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from anY'CriSiS trig¬gered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flex¬ible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign ex¬change exposure.
NATIONALISATION OF BANKS IN INDIA
The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi, the then Prime Min¬ister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them.
• Central Bank of India
• Bank of Maharashtra
• Dena Bank
• Punjab National Bank
• Syndicate Bank
• Canara Bank
• Indian Bank
• Indian Overseas Bank
• Bank of Baroda
• Union Bank
• Allahabad BaI1k
• United Bank of India
• UCO Bank
• Bank of India
Before the steps of nationalisation of Indian banks, only State Bank of India (SBIl was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1959.
The State Bank of India is India's largest commer¬cial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers - either di¬rectly or through subsidiaries - a wide range of bank¬ing services.
The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over Rs. 200 crores. Till 2006, approximately 80% of the banking segment in India were under Govemment ownership.
