What is the Nationalised Bank?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The banks that the Indian government owns are called Nationalised Banks. Public sector banks and private sector banks are the two types of banks. Public sector banks are another name for national banks. Public sector banks are completely under the control of the government, whereas private sector banks are under the control of businesses and private individuals.
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Nationalised Banks Meaning
A private sector bank becomes a nationalised bank when it is acquired by the government. Similarly, a public sector bank becomes a privatized bank when the government sells it to a business or individual.
The nationalised banks were previously owned by private parties, but due to economic or financial pressures, the government took over ownership. Technically speaking, the government owns the vast majority of the shares in nationalised banks.
- 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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