The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 is a law that nationalized 14 major commercial banks in India. The purpose of the act was to regulate and control the banking sector in India by bringing these banks under the control of the central government. The act empowered the Reserve Bank of India to issue directions to these banks and required them to follow the policies and guidelines laid down by the government. The act also provided for the compensation of the shareholders of the banks whose shares were acquired by the government.