what is the meaning of nationalization of bank

@1anurag1 (3576)
India
June 25, 2010 2:04pm CST
what is the meaning of nationalization of bank yes this is the question. we listen many times that the nationalization of the banks has saved indian banks to confront the economic recession and all. but i am not sure what is actually the nationalization.share your view
2 responses
diamania
@diamania (7011)
• Netherlands
25 Jun 10
Nationalization is the process of transferring a bank from private property to state property. Such transfers are done to ensure that depositors regain faith in the bank. If I am wrong, please correct me. ;)
1 person likes this
1anurag1
@1anurag1 (3576)
• India
25 Jun 10
thanks for response. i think you are correct as i have read almost the same meaning. but for this i think government has to pay the owners in some way. what is that.
nitin_hec
@nitin_hec (1096)
• India
25 Jun 10
Last time Indian bank was nationalized at the tenure of Indira Gandhi due to war between India and Pakistan and India was in very high crisis and to save economy Indira Gandhi at that time Nationalized lots of private big companies.