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Q52 (IAS/2006) Economy › Money, Banking & Inflation › Banking structure Answer Verified

Which one of the following Indian banks is not nationalized bank?

Result
Your answer: —  Â·  Correct: C
Explanation

Federal Bank is a privately owned (private‑sector) scheduled commercial bank and is listed under Private Banks by the RBI, whereas Corporation Bank, Dena Bank and Vijaya Bank have been part of the public/nationalized banking sector [1]. Historical accounts of bank nationalisation show Corporation Bank and Vijaya Bank were included in the 1980 wave of nationalizations, and Dena Bank was part of earlier nationalisation measures that brought major private banks into public ownership; nationalized banks are private banks taken over by the government and thereafter classified as public sector banks [2]. Therefore the bank among the options that was not nationalized is Federal Bank (option 3).

Sources

  1. [1] https://rbi.org.in/hindi1/Upload/content/PDFs/APPEH23102021_AP1.pdf
  2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 4. Co-operative Banks: > p. 82
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