Forty Years Ago, April 16, 1980: Banks Nationalised

The Indian Express front page, April 16, 1980. (Express archives)

In a surprise move, the government promulgated an ordinance, nationalising six scheduled commercial banks. The banks are: Andhra Bank Limited, Corporation Bank Limited, the New Bank of India Limited, the Oriental Bank of Commerce Limited, the Punjab and Sind Bank Limited and Vijaya Bank Limited. The total demand and time liabilities of these banks as on March 14 last amounted to over Rs 2,356 crore. The ordinance, which the President signed after a meeting of the political affairs committee of the cabinet, is titled the “Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1980.”

New Import Policy

The new import policy announced maintains the trend of liberalisation but seeks to increase and diversify export production. At the same time, protection to indigenous capabilities has been, as always, given due consideration. A new scheme of duty-free import of raw materials against replenishment licences will be tried out selectively. Commerce Minister Pranab Mukherjee, who outlined the policy, said that for sustained economic growth, “stability” and continuity of policies are necessary. Therefore, mid-course change of direction is not advisable. But, at the same time, changes have been made wherever found expedient.”

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Indira-Zia Meet

There is a distinct possibility of a meeting between Prime Minister Indira Gandhi and the Pakistan President General Zia-ul-Haq later this week in Salisbury, where the two leaders will be present to attend the independence celebrations of Zimbabwe. This follows the discussions Mrs Gandhi’s special envoy, Swaran Singh, had had in Islamabad. There will be no agenda for the meeting, but it is certain that the two will have an exchange of views on how India and Pakistan should go about normalising their relations and also on the situation in the region following the Soviet invasion of Afghanistan.