PUBLIC_SECTOR_BANKS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary legislation governing the establishment and functioning of public sector banks in India?
Public sector banks in India are governed primarily by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980, along with the Banking Regulation Act, 1949.
What is the full form of PSB in the Indian banking context?
Public Sector Bank, where government holds majority stake.
Which Act enabled the nationalisation of 14 major private banks in India in 1969?
The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 gave retrospective legal effect to the nationalisation of 14 major private banks on 19 July 1969 by Presidential Ordinance.
Which Act governs the nationalised banks other than SBI in India?
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
How many banks were nationalised in the second round of bank nationalisation in 1980?
Six more private sector banks were nationalised in 1980 under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, bringing the total to 20 nationalised banks.
How many public sector banks currently operate in India after recent mergers?
Twelve public sector banks operate in India currently.
What is the minimum government shareholding required in a nationalised bank?
The government must hold a minimum of 51% of the paid-up capital in a nationalised public sector bank at all times, as mandated under the relevant acquisition Acts.
What is the maximum number of directors on the board of a nationalised bank?
Fifteen directors as per the Banking Companies Acquisition Act.
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