03 October 2007
A SCHEDULED BANK IS ONE WHICH FINDS A PLACE IN THE SCHEDULE TO THE BANKING COMPANIES REGULATION ACT/RBI SCHEDULE OF SCHDULED BANKS. APART FROM SCHEDULED BANKS ,THERE ARE ALSO UNSCHEDULED BANKS. WHERE AS A PRIVATE BANK NATIONALISED BY GOVT .OF INDIA IS A NATIONALISED BANK.( REMEMBER WHEN MRS. INDIRA GANDHI NATIONALISED 14 PRIVATE BANKS IN 1969 LIKE SYNDICATE BANK,PNB ETC...). THUS WHILE ALL NATIONALISED BANKS ARE SCHEDULED BANKS ,ALL SCHEDULED BANKS ARE NOT NATIONALISED. THE RBI NORMS FOR ALL SCHEDULED BANKS ARE SAME. BUT ALL NATIONALISED BANKS OVER AND ABOVE THE SCHEDULED BANK NORMS ARE ALSO GOVERNED BY RBI NORMS FOR NATIONALISED BANKS ( SUCH NORMS ARE OVER AND ABOVE NORMS FOR SCHEDULESD BANKS) R.V.RAO
04 October 2007
If more than 51 % of the shares are held by the Central Government , then the bank is said to be a nationalised bank. Normally the scheduled banks absorbed by nationalised banks are also becoming nationalised bank since its separate identity is lost and gets merged with the nationalised bank.
05 October 2007
When shares are acquired by the Government, the shares of which shareholder does the Government acquire first?If none of the shareholders are prepared to sell the shares, how does the Government acquire?What did the Government do in the given case of Nationalisation of Banks in 1969?
17 October 2007
Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches.The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalised banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank".
"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".
The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them. Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India Befor the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960.
The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services.
The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores. Till this year, approximately 80% of the banking segment in India were under Government ownership.
After the nationalisation of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%.
1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1969 : Nationalisation of 14 major banks. 1980 : Nationalisation of seven banks with deposits over 200 crores.
17 October 2007
which authority fixed the rate per share for acquisition of shares during the nationalisation? was that a compulsory acquistion a rate determined in advance?Was there an option for the share holders to go to court for higher compensation? Did any such issue happen during that time?
01 November 2007
But who fixed the rate of acquisition per shares during nationalisation said above? and how did they come to that rate? was it after discussions with the then directors and shareholders of the company?