One of the objectives of social control over banks in 1968 and nationalization of 14 major commercial banks in 1969 was to change the policies of banking institutions regarding loans and advances to various sectors of the economy. It was experienced that the commercial banks were hesitant in providing advances to the most important sectors of the economy i.e. villages, agriculture agro based units, and cottage industries, which resulted in the lop sided development of the country. These sectors were in need of huge financial support from the organized institutions like commercial banks, cooperatives banks etc. The various study Groups and committees appointed by Reserve Bank of India revealed that prior to nationalization of banks only 0.2 percent finance was provided to agriculture by commercial banks. On 30th June 1969 the total agricultural accounts with public sector banks were 1,65,000 and the total outstanding amount was Rs 162 crores, contributing only 5.4% to the total advances. To achieve the goal of balanced development and equal distribution of income and property , There was a continuous demand from the various corners of the society to bring the banking institution under the control of Govt so as to provide necessary finances to the most neglected sectors of our economy. Keeping in view this aspect at the second meeting of the national credit council held at New Delhi on July 24, 1968,it was emphasized that the commercial banks should increase their involvement in the financing of the most neglected sector of the economy i.e. agriculture and small scale industries .Immediately on July 19,1969 14 scheduled commercials banks having deposits of Rs 50 corers and above were nationalized and again on 15th April 1980, 6 more banks having deposits of Rs 200 corers and above brought under the control of Govt .Thus the public sector banks accounted for about 91% of the total deposits.