- By Aditya Pratap Singh
- Mon, 25 Mar 2024 08:08 PM (IST)
- Source:JND
Complete List of Public Sector Banks in India: Nationalized banks in India play an important role in the country's economy, providing essential financial services to individuals, businesses, and government agencies. After independence, the Indian government nationalized many banks to ensure equitable credit distribution and promote economic growth. Today we will have a comprehensive overview of nationalized banks in India, their history, functions, and importance for society.
Historical background
In 1969, the Indian government under then Prime Minister Indira Gandhi enacted the Banking Companies (Acquisition and Transfer of Shares) Act. The key legislation aimed to bring major banks under state ownership to provide credit to sectors like agriculture, small-scale industries, and rural development. The move was enacted to improve financial inclusion and reduce regional disparities in access to banking services.
List of Nationalised Banks in India
Below is the list of nationalised banks in India.
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of Baroda (BOB)
- Canara Bank
- Central Bank of India
- Indian Overseas Bank (IOB)
- Union Bank of India
- Indian Bank
- Bank of India
- Punjab & Sind Bank
- UCO Bank
- Bank of Maharashtra
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Various Functions of the National Bank
Nationalised banks perform in various captivity to meet the financial needs of individuals citizens, businesses, and government as well. Below are some important functions of nationalized banks.
- Bank deposits: Nationalized banks offer various types of deposits including current accounts, fixed deposits, savings accounts, and recurring deposits.
- Loan: These banks are among the major sources of getting loans. They provide loans to various sectors of the economy including agriculture, industry, trade, and services.
- Payment services: Nationalized banks are the main source for making payment either domestic or international payments through various channels, which include cheques, demand drafts, electronic fund transfers, and online banking.
- Investment Instrument: Investment Instruments like mutual funds, insurance, saving schemes, and pension plans to help clients achieve their financial goals.
What is the importance of a nationalized bank?
- They are the engines of economic growth as they mobilise savings and efficiently allocate credit to productive sectors.
- They are the driving force in implementing government policies that are aimed at promoting inclusive growth, poverty alleviation, and rural development.
- They provide financial stability by ensuring a safe and reliable banking system for every stakeholder.
- Promoting social welfare by providing affordable credit to the poorest sections of society, including farmers, micro-entrepreneurs, and low-income families is also done by nationalised banks.