What is the difference between Nationalized Bank and Public Sector Bank?

Nationalization is an act of taking an industry or assets into the public ownership of a national government. Nationalization refers to private assets being transferred to the public sector to be operated by or owned by the state. So there is no difference between a nationalized bank and a public sector Bank. The opposite of nationalization is privatization. The Banks which were earlier in private sector were transferred to the public Sector by the act of nationalization. The first nationalized bank was Imperial Bank of India (under the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955. In 1969 , 14 banks were nationalized and in 1980, the second phase of nationalization of Indian banks took place, in which 7 more banks were nationalized. Currently total 26 public sector banks in India all were Nationalized over a period of time.

Comments

  • balaviswanath
    Reply

    In 3rd statement it is showing that nationalized banks are public sector banks, but in last statement it is telling that 26 public sector banks are nationalized.

    I am in a confusion between these two statements. Can you help me to understand this.

  • ravi teja
    Reply

    Here they said currently there were 26 psb’s which were nationalized over a period of time

  • N SHIVAKUMAR
    Reply

    All nationalization bank s are public sector banks “vice-versa it is not.. why

  • shafali
    Reply

    yes, there is no difference b/w both but a little difference is that nationalized bank is those which are nationalized into two phrases 1969 to 1980.These banks were established under Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980.otherwise all are public banks