Written by Dr. Vipin Pandey
It was a matter of great fortune when 14 banks were nationalized and nationalization were took place on this day (july 19, 2021) and now after so many years it has been seen that the process of privatization or merger of banks has started, will it not be a matter of great misfortune that Why banks are being privatized in today’s date?
The purpose of a nationalization of bank can be especially beneficial for rural areas, but the main objective of a private banks or big banks is to make profit, it may be useful in big cities or metro cities but same are not beneficial for rural or town areas.
Instead of focusing on privatization of banks or the merger of many banks, government should develop such a system of banks, which can connect the rural masses or the general public.
Small farmers or marginal farmers would like to hesitate to deposit small capital on banks making them to change their habits on savings. Somewhere it can indirectly harm the economy of our country.
Small farmers or marginal farmers may have to pay more interest in getting loans from private banks and due to which they may have to put financial burden on them somewhere and this can create a mental pressure on the farmers which can be fatal for them and because of this as i am not an economist but i believe that instead of promoting private banks or merger of banks in the country, the system of nationalized banks should be further improved so that the connectivity of the banks can be a link with general public or marginal farmers or small farmers and which may cause of prosperity in the Indian Society.
Good, short and summarize explanation