PUBLIC SECTOR AND CO OPERATIVE 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.
Which Act governs the establishment and functioning of public sector banks in India?
Public sector banks are primarily governed by the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980, which nationalised major commercial banks.
What is the full form of SBI and when was it established?
State Bank of India, established in 1955 under SBI Act.
How many banks were nationalised in the first wave of bank nationalisation in 1969?
14 major commercial banks were nationalised in 1969 under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
Which committee recommended the nationalisation of banks in 1969?
No formal committee; political decision by PM Indira Gandhi.
How many additional banks were nationalised in the second wave in 1980?
6 more commercial banks were nationalised in 1980, bringing the total number of nationalised banks to 20.
What is the maximum shareholding a private investor can hold in a public sector bank?
Up to 49% as government must hold minimum 51%.
What is the minimum government shareholding required in a public sector bank?
The government must hold a minimum of 51% of the paid-up share capital in a public sector bank, ensuring majority ownership and control.
Which Act regulates the service conditions of employees of nationalised banks?
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
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