“The Banking policy has taken an about turn Explain the
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SOLUTION
At the time of Independendence, there were a number of private Banks doing business. Soon, it was felt that their policies were not in tune with the socialist pattern of economy. Their only motive was profit. They were not interested in giving credit to poor farmers or medium and small entrepreneurs. In the 60’s all banks were nationalised. They came directly under the purview of Government of India and controlled by RBI. In the 90’s it was felt that due to excessive restrictions, nationalised banks were inefficient and not able to provide services in the changing Global scene. Thus, in 1991, banks were not only allowed to start in the Private sector but foreign Banks were allowed to enter Indian market.