mopping up small savings at reasonable rates with several options.
The common man has the option to park his savings under a few alternatives, including the small savings schemes introduced by the government from time to time and in bank deposits in the form of savings accounts, recurring deposits and time deposits.
The modern economies in the world have developed primarily by making best use of the credit availability in their systems.
An efficient banking system must cater to the needs of high end investors by making available high amounts of capital for big projects in the industrial, infrastructure and service sectors.
A few more were nationalised after a couple of years.
This resulted in transferring the ownership of these banks to the State and the Reserve Bank of India could then issue directions to these banks to fund the national programmes, the rural sector, the plan priorities and the priority sector at differential rate of interest.
The interests of the poorer sections as well as those of the common man were being ignored.
In 1969, Indian government took a historic decision to nationalise 14 biggest private commercial banks.
At the same time, the medium and small ventures must also have credit available to them for new investment and expansion of the existing units.
Rural sector in a country like India can grow only if cheaper credit is available to the farmers for their short and medium term needs.