Supreme Court struck down Bank Nationalisation Act 1969, Read R.C. Cooper vs Union of India case

Did You Know? The Supreme Court of India cancelled the nationalisation of Banks in 1969. Yes, you heard it right. In this article, we will have a look at the Supreme Court case.

On February 10, 1970, the Supreme Court of India struck down the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1969, which had nationalized 14 major commercial banks. In the landmark R.C. Cooper v. Union of India case, a 10-1 majority ruled the act unconstitutional due to hostile discrimination and inadequate compensation. 

The then Prime Minister Indira Gandhi wanted to nationalise the private banks so that banks could participate in the development of the nation and public welfare. In 1969, the Government of India, led by Prime Minister Indira Gandhi, nationalised 14 major commercial banks. The government took control of these private banks to improve credit flow to farmers, small industries, and weaker sections. However, this decision was challenged in the Supreme Court. R.C. Cooper filed case in Court against the Government.

Rustam Cavasjee Cooper (R.C. Cooper) was a prominent figure in the Indian financial sector. He served as the Director of the Central Bank of India Ltd. & held significant shares in multiple banking institutions. When the government moved to nationalize banks, Cooper felt his rights as a shareholder & a citizen were being crushed. He was not just a businessman; he became the face of a movement that forced the Supreme Court to reconsider the limits of state power over private enterprise

The Court said:

• The compensation given to bank shareholders was not fair.
• The law violated the Right to Property (which was a Fundamental Right at that time under Article 31).
• Some provisions of the Act were unconstitutional.

PSU Banks will spend approx Rs.100 – Rs.150 crore in rotational transfer of Officers this year

PSU Banks will spend approx Rs.100 – Rs.150 crore in rotational transfer of Officers this year. Banks are transferring officers after 5,6,7 years in a region. Critics say this amount can be used to hire more staff and improve infrastructure.

PMO India Nirmala Sitharaman Narendra Modi

RBI Moves to ban sales Incentive for bank staff

High-Level Committee Announced on Bank Mergers 🏦

📢 High-Level Committee Announced on Bank Mergers 🏦

The Government has announced the formation of a High-Level Committee to review and recommend the future course of bank mergers in India.

🔍 What the committee is expected to examine: • Impact of past mergers on efficiency and service quality

• Financial strength and operational challenges of merged banks

• Concerns of employees and customers

• Whether further mergers are needed or a consolidation pause is required

Bank mergers are not just structural changes—they affect staff morale, customer access, regional presence, and overall trust in banking. A data-driven, transparent, and consultative approach is essential.

👉 The outcome of this committee will shape the next phase of banking reforms.

#BankMergers #HighLevelCommittee #BankingReforms #PublicSectorBanks #IndianBanking

DA Chart for BANKER FROM FEBRUARY 2026

DA increase from February For serving employees 1.07%

DA increase from February                                  For serving employees 1.07%                                         For retirees 3.87%.

Chart upload very soon

Goldsmith cheats India’s Largest PSU Bank, Fake Gold submitted in SBI

One more gold loan fraud has been reported in banks. This time the fraud has been reported from Panchkula, Haryana.

A man took a gold loan of approximately ₹13.25 lakh by pledging fake gold jewellery to India’s largest public sector bank – State Bank of India (SBI).

Throughout the tenure of loan, no discrepancy was observed. The matter came to light when the loan turned NPA. The bank held an auction to sell the gold and recover money but this turned out to be a big shock to the bank employees. On Auction, the gold was found to be fake and ultimately the bank manager has filed a case against the goldsmith and the accused loan borrower.

Police FIR and Loan Details

Kushan Kumar Saurabh, manager of the State Bank of India (SBI) in Pinjore, Panchkula, has filed a complaint with the police, stating that Sandeep, son of Balbir, a resident of Patel Nagar, Hisar, took a gold loan from the bank.

The accused first visited the bank on October 10, 2024, with gold bangles. Panel goldsmiths Anmol Bansal and Harish Bansal were called to inspect the gold items. The panel goldsmiths confirmed the items as genuine. Based on this confirmation from the goldsmith, the bank sanctioned a gold loan of ₹4,30,000.

What’s more shocking is that the loan was taken thrice by the borrower but nobody could identify the issues with the gold.

The accused visited Bank again on November 16, 2024 to take another gold loan. The bank again called in panel-authorized goldsmiths Anmol Bansal and Harish Bansal. After inspection, they declared the gold genuine. The bank again sanctioned Sandeep a loan of ₹448,000. Similarly, the bank issued a third loan on December 13, 2024.

Loan Turned NPA

Soon the accused borrower stopped depositing money in his loan account and the loan account ultimately turned NPA. The bank auctioned the gold and the bank auctioneer, Laxmi Jewellers, inspected the gold. The jewellers found that the gold was merely gold-plated, leaving everyone shocked.

This incident has raised a very serious question on the functioning and structure of Banks. How can a goldsmith cheat India’s largest public sector bank? This incident states that banks need to place a more strict check on gold loans.