List of Nationalized Banks in India, Check the Nationalization of Banks List here

List of Nationalized Banks in India: After Independence different banks were established in our country. Later as per the demand of the economy and the citizens, several banks were Nationalised. Nationalized banks are those in which government has more than 50% shareholding. There are a total of 12 public sector banks in India today. These banks were nationalised and are currently run by the government.

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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

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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. The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 allowed for the nationalisation of banks. On July 19, 1969, the ordinance went into effect in order "to better satisfy the needs of economic development in compliance with national policy objectives." 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. 

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 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:

Advantages of Public Sector Banks

• Deposits provide a high rate of interest.
• loans with minimal interest.
• The jobs of employees are entirely secure.
• When they retire, employees are also qualified for pensions.
• a business that serves a lot of customers.
• provides services to the nation's rural areas.
• offers financial services via a number of branches.

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Disadvantages of Public Sector Banks

• There is a substantial bureaucratic structure at the managerial level.
• failure to act quickly enough to make a significant financial choice.
• Less individualised service is provided to customers.
• Too many complaints have been made about the unsatisfactory service provided by the staff.
• Major corruption scandals have engulfed the majority of public-sector banks.
• The rate of customer default is high.
• Public sector banks spend a lot of money on financial activities.

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