What is the difference between a nationalised bank and state bank of India?

Answer 1

A Nationalized bank is one that is owned by the government of the country. Since the people decide who the government is, they are also referred to as public sector banks. The government is responsible for the money deposited into the accounts of these banks.

A private sector bank is one that is owned by an independent individual or a company that is controlled by a few individuals. In short, the bank is owned by someone else and they run the bank. The person owning/running the bank is responsible for the money deposited into the accounts of these banks.

Answer 2

Nationalized bank refers to public bank which is taken over by government by acquiring shares or by legislation or charter passed in that regard. State Bank of India is largest nationalized bank in India. This is not to be confused with Reserve Bank of India which is central banking authority which monitors activities of all banks operation in India, domestic or foreign.

Answer 3

State Bank of India has been formed by a separate Act of parliament State Bank of India Act 1955 whereas nationalised bank were commecial banks which were nationalised as per Banking companies (Acquisition and transfer of undertakings ) Act 1970.

Answer 4

A nationalised bank is majority owned by the state/government/people. A foreign bank is owned by or has it's headquarters in a different country.

Answer 5

nationalized means govt controls it while scheduled banks are ltd pvt companies only controlled by RBI