The nationalization of banks in 1969 was an attempt to bring in economic democracy through democratizing capital. Do you agree? Which factors prompted the State to nationalize banks in India? Discuss.
Nationalization of banks in India was a watershed movement in post independence from social and economic perspective. It was not sole economic decision, as also largely had political motivation also. It helped in economic democracy as
- It brought banks out from hegemony of few capitalist and opened doors for common men.
- Bank control and highest official, became more answerable to people and government after it.
- Flow of bank credit opened for common men who largely dependent on informal source of credit.
- The timing was parallel to green revolution so that move helped to increase credit in agriculture sector.
- After this step banks started to shift its base in semi-urban and rural areas also.
- After this move, neglected sector became Primary sector for credit support.
- Many welfare schemes of government like IRDP and SEPUP get banking loan to support poor and deprived people.
This change happened because of few key reasons-
- Political reason- as leftist pressure was mounting for nationalization of banks and it was a move to attract large vote bank.
- Social reasons- to increase base of banking sector for larger population.
- Economic reasons- to ensure flow of credit not just to private partners but in government supported schemes also.
Although nationalization has its challenges; even today after 50 years, 50% population is looking for financial inclusion. Government interference has increased after it, management, professionalism, and decision making became complex. Now it is hope that RBI and government initiative of INDRADANUSH scheme will do concrete good for banking sector.
What were the key features of the Shimla Agreement signed by India and Pakistan post 1971 war? Critics say that the agreement was a lost opportunity for India. What do you think? Critically Comment.
Shimla agreement was signed in 1972 between PM of India and President of Pakistan. It remembered for many reasons
- Not just post war treaty– but a peace keeping treating between two nations where both nations agreed to respect international borders, sovereignty, and non interference on other’s internal matter.
- People to people contact– were enforced through this treaty
- United nation charter– both countries decided to follow it for bilateral relations.
- No haste policy– Both countries agreed not to allow hostile behavior for each other in respective territory.
- Constitutional solution– both countries agreed to take constitutional route to have consensus at national level, rectify the Shimla pact and exchange it.
Critics say it was a lost opportunity because-
- India had emphatic win over Pakistan and had 93000 army personal so India could do hard negotiation on all issues include J&K.
- Chances were to achieve permanent J&K solution which is still haunting India.
- India could negotiate POK for the land what we won after the war in Shimla pact.
But it was not a lost choice as
- Not many choice- India had except call for peaceful negation after the issue get high level international attention.
- Stability of Bangladesh- was a prime goal that time which was not possible without having peace with Pakistan and release huge army from Bangladesh territory.
- India retained key strategic areas for future, even when we returned 13000 km square land to Pakistan.
- It helped India to position itself as peace lover nation in international platform.
It was a diplomatic win for India and in give condition more could not be expected as India was itself trying to fix its internal challenges on various fronts.
Why having an LPG connection important for woman empowerment? In this regard, do you think Pradhan Mantri Ujjwala Yojana can make a difference? Examine. Also discuss its other advantages.
Ujjawala Yojana has targeted to touch 5 crore poor household under ambit of free gas connection. LPG connection is not mere social scheme but seen as initiative to women empowerment because of following reasons-
Health- women suffer most by poor cooking habits like use of bio products. Maximum TB problems, eye sights issues are to them because of this.
Money- women who manage normally household expenditure in India, to manage money for fuel purpose indirectly become part of their responsibility.
DBT facility- as women will get so more chances for proper use of money for same purpose.
Time saving- by providing it, women will save time that otherwise used for wood collection. That can be used for other productive purpose.
Reduce health expenditure- on family members which will stop money drainage.
Reduce environmental lose- as tree will be saved in village area so better environment.
Reduce greenhouse gas emission from conventional cooking habit
Financial inclusion- though this, rural and tribal community will have regular touch with banks so active financial inclusion.
With all these benefits, Ujjawa is a great initiative to ensure women and family members health, save money, push financial inclusion, widen the social service base, and nice experience of JAM trinity. With this, now many other areas can open for direct benefit transfer. Same time it is one step by India to ahead to achieve SDG goals.