The number of banks nationalised in the second round of bank nationalisation in 1980 was:

On 15 April 1980, the Government of India nationalised six more private commercial banks. This was the second round of bank nationalisation.

The first round:

• On 19 July 1969, the government of Indira Gandhi nationalised 14 major commercial banks through an ordinance, which was later replaced by a law.
• These banks each had deposits of more than 50 crore rupees.

The second round (1980):

• The six banks nationalised in 1980 had deposits of more than 200 crore rupees each.
• They were Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank.
• This was done by the government of Indira Gandhi after she returned to power in 1980.

Objectives of nationalisation:

• To extend banking services to rural and semi-urban areas.
• To direct credit to priority sectors such as agriculture, small industries and weaker sections.
• To prevent the concentration of economic power in a few hands.
• To mobilise savings for national development.

Results:

• The number of bank branches, especially in rural areas, increased greatly.
• Bank deposits and credit to agriculture and small industries grew rapidly.
• Priority sector lending targets were introduced.

Later changes:

• After the 1991 reforms, private banks were again allowed to be set up.
• In 1993, New Bank of India was merged with Punjab National Bank, the only merger of a nationalised bank in the early years.
• In 2019 and 2020, many public sector banks were merged, reducing their number to 12.

State Bank of India:

The State Bank of India was formed in 1955 by nationalising the Imperial Bank of India, before the 1969 nationalisation.

Why not the other options?

• ✗Fourteen banks were nationalised in 1969.
• ✗Eight and ten do not match.