The concept of the banking system in India was developed during the British era. The British East India Company established three banks in India during the 19th century. The three banks were merged into one imperial bank later.
The Indian banking sector is broadly classified as registered and unregistered banks. Registered banks are those banks which are incorporated in the Second Schedule of the Reserve Bank of India Act 1934.
In addition, they are classified into nationalized banks, State Bank of India and its associates, regional rural banks, foreign banks and other private sector banks.
The terminology Commercial Banks implies both registered and unlisted banks governed by the Banking Regulation Law of 1949.
There are many similarities between the two, however there are also some differences. The main difference between a programmed bank and a nationalized bank that is, the registered bank comprises all, but is not limited to the nationalized banks, but the nationalized banks are totally under the control of the government.
Comparison parameter Scheduled banks Nationalized banks
Customer service | The programmed banks are part public and part private, so the service will be customer-centric. | Comparatively the service is better, although it is not as efficient as in private sector banks. |
Purpose | The programmed banks were started for productive purposes | Nationalized banks were started for political purposes |
Governance | Semi-government or quasi-government | As the majority of the shares are owned, it is fully governed by the Government. |
Reason | It provides financial assistance to the economically weaker sectors of society. | Provides financial assistance to everyone in the country. |
Operations | Larger-scale, nationwide operations with numerous branches | Operations are relatively smaller in scale as there are only a few nationalized banks in India |
Registered banks are those banks which are incorporated in the Second Schedule of the Reserve Bank of India Act 1934.
Reserve Bank of India has the supreme supervisory authority. All scheduled banks are under RBI and scheduled banks are classified as,
All banks classified in the programmed rate can obtain debts or loans at the RBI bank rate. Registered banks enjoy the benefits of obtaining clearinghouse membership automatically.
Registered banks regularly submit all information on their activities to the Reserve Bank of India. Registered banks are classified into commercial banks and cooperative banks.
Registered banks explicitly follow two conditions, that the fund raised and the paid-up capital of the bank cannot be less than five lakhs of rupees. Another condition is that none of the bank’s actions must affect the interests of the depositor.
Indian private banks became public sector banks through the nationalization operation, which is the root cause of the origin of nationalized banks in India.
Nationalization is nothing more than the government’s taking of authority over assets and companies, generally acquiring the majority of the shares in the company.
The reasons for starting to nationalize banks were to improve banking habits, expand banking in India, control private sectors, minimize regional differences and for social welfare.
There were about 19 nationalized banks in India. Even though the State Bank Of India is often considered a nationalized bank, it is a state-owned organization undertaken as a public sector.
Any bank in which the government has a majority stake is called a nationalized bank. This means that the government calls many of the policies for the bank and it also has an important role in the appointments of directors and even in the decisions about loans.
Banks are the financial institutions that are authorized to accept deposits and grant loans and credits. They play an important role in supporting and promoting the economic balance of a country. Both registered and nationalized banks were established for the welfare of the people to provide financial assistance and other benefits.
Registered banks are classified into different types, where nationalized banks are one of them. Registered banks are primarily profit oriented as they include private sector banks and other foreign banks.
Nationalized banks are primarily service-oriented as they are fully supervised and acquired by the government. The programmed banks are part of the cooperative banks that are under the control of the Cooperative Society.
They serve the needs of rural and agricultural segments, while nationalized banks serve all people. The characteristics provided by the nationalized bank are not on par with those of a private bank that falls under the category of programmed bank. To conclude, the tenure pattern is the key difference between a programmed bank and a nationalized bank.
Cryptocurrency has captivated the world since Bitcoin's mysterious arrival in 2009. It began as a…
Hello, Guys Welcome to our Website. Today we will give you information about a Famous…
Alkenes are chemical elements with double bonds or carbon double bonds. Its general formula is…
Logical semantics is a branch of logic that focuses on studying the meaning of statements…
The Game Boy Advance (GBA) was a popular handheld gaming system developed using the Game…
Soft Puzzle - Drop The Slime APK - Simple and Easy! But that's why this…