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Financial System 227
Act 1965 and others are non scheduled banks. To be included in the second scheduled of
the Banking regulation act the bank full fill the following conditions:
• Must have paid up capital and reserves of not less than Rs. five lakh.
• It must also satisfy the RBI that its affairs are conducted in a manner.
• It is required to maintain a certain amount of reserves with the RBI.
Nationalised Banks
To use financial institutions as the instrument of promoting economic and social
development in a more purposeful manner and to overcome the monopoly over financial
resources, the government of India nationalised 20 commercial banks during the tenure of
Prime Minister of Indira Gandhi.
On July 19, 1969, the first nationalisation of 14 banks took place with the following
banks:
1. Bank of India
2. Union Bank of India
3. Bank of Baroda
4. Bank of Maharashtra
5. Punjab National Bank
6. Indian Bank
7. Indian Overseas Bank
8. Central Bank of India
9. Canara Bank
10. Syndicate Bank
11. United Commercial Bank
12. Allahabad Bank
13. United Bank of India
14. Dena Bank
On April 15, 1980 the second nationalisation took place with the following banks:
1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental Bank of Commerce
5. Punjab and Sind Bank
6. Vijaya Bank
In October 1993 the new bank of India was merged with Punjab National Bank, in
March 2007, Bhart Overseas Bank merged with Indian Overseas Bank therefore, at present
there are only 19 nationalised banks in the country besides the RBI.