The record of commercial banks in serving the economy by stimulating savings was claimed to be commendable. They had also provided timely and adequate credit to the small-scale sector. But these arguments did not convince Indira Gandhis government; it wanted to enfeeble the private industrial sector, which had built up close connections with banks. The main features of the social control scheme were the establishment of a National Credit Council, with the Finance Minister as the Chairman, and representatives of agriculture, trade, industry, banks and professional groups. The RBI was given additional powers, and the boards of directors of banks were reconstituted with a majority of non-industrialists.
Posted on: Sat, 01 Nov 2014 13:23:11 +0000
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