Today’s history: 14 private banks were nationalized, Prime Minister Indira Gandhi’s decision was being opposed by her own Finance Minister Morarji Desai

On July 19, 1969 i.e. exactly 52 years ago, the then Prime Minister Indira Gandhi brought an ordinance. 14 big private banks of the country were nationalized through this ordinance named ‘Banking Companies Ordinance’. This decision is counted among the big decisions taken by Indira Gandhi.

In fact, after World War II, the idea of ​​subordinating banks to the government was born in Europe. Countries had to suffer heavy financial losses due to World War I. This weakened the economic condition of these countries. Many European countries nationalized banks to overcome the crisis.

In India too, the Reserve Bank of India was nationalized in 1949. Till now all the private banks in India were in the hands of industrialists. People used to shy away from going to the banks. Also, the business of banks was limited only to the big cities.

Indira said that it is necessary to take banks to rural areas. Private banks are not playing their part in the social development of the country. That is why nationalization of banks is necessary. However, Indira’s decision was so controversial that her own government’s finance minister Morarji Desai was against it.

After nationalization, there was a tremendous increase in the number of branches of banks. Banks started coming out of cities and opening in villages and towns. This gave an opportunity to the rural population of India to connect with banking. Within three decades, the branches of banks in the country increased from 8 thousand to 60 thousand.

The 14 banks that were nationalized had about 80 per cent of the country’s deposits at that time, but this capital was being invested only in high-profit sectors. On the other hand, within 10 years of independence, more than 300 small banks had become poor. Crores of people’s deposits were also sunk in this. Because of this, the government decided to take over the command of these banks.

Indira entrusted the implementation of this decision to her Principal Secretary PN Haksar. Haksar is said to have been influenced by the socialist ideology of the Soviet Union and the government controlled the banks there. In 1967, Indira introduced a 10-point program in the Congress party.

In this program, the government’s control over the banks, government help to the king-maharajas and the fixation of minimum wages were the main points. Indira proposed the nationalization of banks at the Bangalore session of Congress on 7 July 1969.

This decision of Indira was opposed by the then Finance Minister Morarji Desai. After this Indira ordered to change the ministry of Morarji Desai. Angered by this, Morarji Desai resigned from the post of Finance Minister.

On 19 July 1969, Indira promulgated an ordinance and nationalized 14 banks. This was followed by nationalization of 6 more banks in April 1980.

1941: Tom and Jerry got its name

On this day in 1941, the children’s favorite cartoon characters Tom and Jerry got their name. In fact, Tom and Jerry first appeared in public in 1940 in a cartoon film called “Puss Get the Boots”. The film was so successful that it received an Oscar nomination for Best Animated Film. Although the names of both the characters in this film were Jasper and Jinx.

When this movie became famous, the animators thought of giving another name to both the characters. William Hanna and Joseph Barbera, the creators of Tom and Jerry, announced a $50 reward for the best name for the duo. Animator John Carr named the mouse-cat pair Tom and Jerry.

William Hanna and Joseph Barbera.

William and Joseph liked this name. Together they made another film called ‘The Midnight Snack’. The film was released on 19 July 1941. The mouse and cat were named Tom and Jerry for the first time in this film.

This day is also remembered in history because of these important events…

201063 people died in a train accident in Kolkata.
1985: School teacher Christa McAuliffe was selected for the space mission. For the first time a teacher was selected for a space mission. However, Christa died in January 1986 when Challenger exploded while on the mission.

1980: The Olympics started in Moscow. Many countries boycotted these games due to the intervention of the Soviet Union’s army in Afghanistan.

1961: Trans World Airlines introduced in-flight movies to first class passengers.

1952: While playing the follow-on against England, the entire Indian cricket team got out for 82 runs.

1947: Burmese Prime Minister Aung Sen was assassinated in Rangoon.

1903: French cyclist Maurice Gérin won the first Tour de France of 2,428 km.

1827: Revolutionary Mangal Pandey was born in Faizabad district of Uttar Pradesh.