What is the Nationalised Bank?

By Ritesh|Updated : July 29th, 2022

National Banks are the banks that are owned by the Indian Government. There are two types of banks Public Sector Bank and Private Sector Bank. National Banks are also known as Public Sector banks. The government has full control of the public sector banks and the private sector banks are controlled by companies and individuals. When a private sector bank is bought by the government it becomes nationalized bank. Similarly, when the government sells a public sector bank to a company or a person, it becomes privatized bank.

Important Facts Related to Nationalised Banks in India

The Nationalized banks were owned by the private players but due to financial or socio-economic exigencies, the ownership was acquired by the government. In technical terms, in Nationalized banks government holds the majority of the share.

  • Punjab National Bank Est 1895 was the first National-owned bank in India.
  • The Imperial Bank of India came into being through the RBI act of 1935.
  • The Reserve Bank of India (RBI) is responsible for regulating all the nationalized and non-nationalized banks in India.
  • Banking Regulation Act 1949 is a legal framework that has all the rules and regulations related to the Indian banking system.

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FAQs for What is the Nationalised Bank?

  • The banks that are owned by the government are called nationalized banks. The nationalized banks are also known as public sector banks, and here the government holds the majority of the share.

  • Currently, there are 12 banks that are nationalized namely- Bank of Baroda, Bank of India, Central Bank of India, Sind Bank, Indian Bank, Canara Bank, Union Bank of India, Indian Overseas Bank, Punjab, Punjab National Bank, UCO Bank, and Bank of Maharashtra, and State Bank Of India.

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