Merger and privatisation of banks

India's banking underwent a major change on 19th July 1969 when the government nationalised 14 private banks, followed by six more in 1980.

- Gopabandhu Mohapatra

The Banking sector became priority sectors like agriculture, employment and rural development. PSBs became the backbone of India's economy, supporting growth, development, and financial inclusion.

The establishment of private banks in India gained momentum after economic liberalization in the 1990s. India embarked on its journey towards economic reforms of 1991, known as the 'New Economic Policy' or the LPG (Liberalisation, Privatisation, Globalisation) policy. During 1993, the Reserve Bank of India (RBI) issued guidelines for licensing new private sector banks, leading to the establishment of 10 new banks. These banks are Global Trust Bank, ICICI Bank, HDFC Bank, Axis Bank, Bank of Punjab, IndusInd Bank, Centurion Bank, IDBI Bank, Times Bank and Development Credit Bank.