The RBI was nationalized on January 1, 49 in terms of the Reserve Traditional bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[Reference] By 1960s, the Indian bank industry came into existence an important application to assist in the development of the Indian economic climate. At the same time, completely emerged like a large company, and a debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Perfect Minister of Indiaexpressed the intention from the GOI in the annual conference of the Almost all India Our elected representatives Meeting in a paper titled " Stray thoughts on Traditional bank Nationalisation. " The conventional paper was received with great enthusiasm. Afterwards, her approach was fast and abrupt, and the GOI issued an ordinance and nationalised the 14 largest commercial banking institutions with effect from the midnight of Come july 1st 19, 69. Jayaprakash Narayan, a national leader of India, explained the step as a " masterstroke of political sagacity. " Inside two weeks in the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on on the lookout for August 1969. A second dosage of nationalization of 6 more industrial banks followed in 80. The explained reason for the nationalization was going to give the federal government more control over credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the financial business of India. Down the line, in the year 1993, the government merged New Lender of India with Punjab National Financial institution. It was the sole merger among nationalized banks and resulted in the decrease of the quantity of nationalised financial institutions from 20 to nineteen. After this, before the 1990s, the nationalised banking companies grew at a pace of around 4%, closer to the average progress rate from the Indian economic system.