Are you aware of the Nationalised Banks In India? Banks are financial institutions acting as intermediatory in the economic landscape. Banks are crucial aspects of the economic system involved in capital creation, saving, and lending. The Indian Banking system has its root in the British Economic system, where banks were initially foreign-owned and acted as tools for financial exploitation of India. Since Independence banks have been playing a crucial role in the Indian Economy with a focus on wealth creation. Post-independence, the government of India took numerous steps to improve the country’s economic development, and one of the major steps they took was establishing RBI in April 1935.  Banking System now comprises broadly two types of banks - Private owned and Public owned banks. Public-owned banks have the majority of shares with the government, with management too under the government. Some public sector banks were once private banks which were later on nationalized. Candidates must know that there is no fixed number of nationalized banks. The list of nationalized banks keeps on changing from time to time. Throughout the history of Independent India, there have been two major instances of Bank Nationalisation,  the Bank Nationalisation of 1969 was a major one. Find out what are different types of banks in India are. Here are some important facts related to the Nationalised Banks in India. 

1. The first national-owned Bank of India was Punjab National Bank Est in 1895 by the likes of Dayal Singh Majehtiya and Lala Lajpat Rai.
2. The Imperial Bank Of India came into being through The Reserve Bank Of India Act of 1935.
3. Banking Regulation Act 1949 is a legal framework that contains rules and regulations related to the banking system.
4. Reserve Bank Of India regulates all the nationalised and non-nationalised banks in India.

The nationalized banks are those banks that were ones owned by the private players but due to the financial or socio-economic exigencies, the ownership was acquired by the government. In more technical terms Nationalised Banks have such an ownership structure where the government is the majority shareholder i.e. >50%.  The list of nationalized banks is important for competitive exams from a question perspective and is also relevant for banking aspirants who wish to join one of the Government banks. As of today, there are 12 nationalized banks in India. Read this article to know more about the List of Nationalised Banks in India and other important aspects related to the banking sector. 

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Table of Contents

1. List of Nationalised Banks in India
2. Why Banks are Nationalised
3. Important Facts Related to Banks
4. What are Government Banks

List Of Nationalised Banks In India 

As of July 2020 after the recent mergers of government banks, there are a total of 12 nationalized banks in India.  The list of nationalised banks is as follows :
 

1. State Bank of India
2. Punjab National Bank (With Merger of Oriental Bank of Commerce and United Bank of India)
3. Bank of Baroda
4. Canara Bank (With Merger of Syndicate Bank)
5. Union Bank of India (With Merger of Andhra Bank and Corporation Bank)
6. Bank of India
7. Indian Bank (With Merger of Allahabad Bank)
8. Central Bank of India
9. Indian Overseas Bank
10. UCO Bank
11. Bank of Maharashtra
12. Punjab & Sind Bank

Check: List of all Presidents of India from 1947 to 2021

Why Banks Were Nationalised

Bank Nationalisation is a policy decision, which is undertaken keeping certain goals in mind. From time to time Central Government can carry out the nationalization of banks. Though candidates must note that Nationalisation as a policy call has lost the favor of Governments post-liberalization of 1991. Nariman committee on banking reforms 1991 and 1998  has called for more private banks in India. More recent government reports like documents have called for Two nationalized banks of global standing. Yet besides knowing the list of nationalized banks candidates must be aware of the reason for bank nationalization.

1. Financial Inclusion of masses. 
2. To promote rapid growth in agriculture, small industries, and export, to encourage new entrepreneurs. 
3. To Discourage crony capitalisation. 
4. Ensure prudent lending and better management of banks. 

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Important Facts Related To Banks

• Allahabad Bank is the oldest Joint Stock Bank of India.
• Andhra Bank was founded by Freedom Fighter Dr. Bhogaraju Pattabhi Sitaramayya
• Bank of India, London, 1946 was the first bank to open a branch outside India.
• The first bank to be given an ISO 9002 certificate for one of its branches — Canara Bank
• The Postal Dept has issued a commemorative stamp in the name of this bank celebrating 100 years in 2011 — Central Bank of India
• First Indian Bank to be wholly owned by Indians — Central Bank of India
• The bank formed on the efforts of Lala Lajpat Rai — Punjab National Bank
• The only merger of nationalized banks took place between — Punjab National Bank and New Bank of India in 1993
• The bank whose brand equity is “Pygmy Deposit Scheme” — Syndicate Bank
• The bank which was conceived by Shri GD Birla — UCO Bank
• The bank which was inaugurated by Mahatma Gandhi in 1919 — Union Bank of India
• The largest among nationalized banks — Punjab National Bank
• The bank was established in the year 1913 as Bank of Mysore Ltd. at the instance of the banking committee headed by the great Engineer – Statesman, Late Dr. Sir M.Visvesvaraya — State Bank of Mysore

What are Government Banks

The public sector banks or PSBs are more commonly known as the Government Banks. The government banks are not under the direct control of the government but the Government of India is the majority stakeholder in them i.e the GOI has more than 51% of the shares.  There are 12 government banks in India or Public sector banks. 
 

List Of Payment Banks In India 

Besides the regular banks in India, Payments banks are a new model of banks, conceptualised by the Reserve Bank of India (RBI), which cannot issue credit. These banks can accept a restricted deposit, which is currently limited to Rs. 200,000 per customer and may be increased further.  The payment banks cannot issue loans and credit cards. Both current accounts and savings accounts can be operated by such banks.  The list of payment banks for General Awareness of candidates is mentioned below:

Source: safalta.com

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