The banking sector in India has been a major contributor to the country's economic growth. It is one of the most critical sectors in the country and plays a vital role in providing financial services to its citizens.
The Indian banking system consists of public and private sector banks, with government-owned banks being the largest players.
Government banks in India are owned by the government and gain the maximum trust of its citizens.
Salient features of government banks include -
They are responsible for providing loans, deposits, credit cards, insurance products, and other banking services to individuals as well as businesses.
Government banks also offer various other services such as foreign exchange transactions, money transfers, and remittances.
They also act as custodians of public funds and provide safekeeping for them.
Government banks in India are subject to regulations imposed by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and other regulatory bodies.
They are also required to adhere to certain corporate governance and risk management standards.
Below are certain features and contacts of some prominent government banks in India.
One of the top government banks in India, the Bank of Baroda was established on July 20, 1908, by Sir Maharaja Sayajirao Gaekwad III with over 150 million global customers.
With a 63.97% ownership, the Indian government holds most of the company. Its attractive features include the following -
The freshly released BOB World mobile app offers all banking services and products in a streamlined, trouble-free way. Customers can also save, invest, borrow, and buy from it.
By facilitating account opening using video KYC, the software also benefits non-customers.
The vision of the Bank of Baroda inspires confidence and security in its diversified client categories.
Contact no.- 1800 258 44 55
A group of prominent merchants from Mumbai, Maharashtra, India, created the Bank of India on September 7, 1906.
Before being nationalized alongside 13 other banks on July 19, 1969, the Bank of India was privately owned and operated. Some of its admirable characteristics are given below -
The minimum balance requirement is zero for setting up an account.
Processing fees for personal loans, home loans, and vehicle loans are waived to a 50% degree.
Branches and internet banking both offer free RTGS and NEFT payment options.
E-Pay Utility Bill Payment and Assisted Online ITR Filling on the Bank's Website.
Existing tie-up partners provide health coverage and group term insurance.
Contact No.- 1800 103 1906
The first commercial bank in India to be entirely owned and run by Indians was the Central Bank of India, which opened its doors in 1911.
The creation of the Central Bank was the culmination of the vision of the bank's founder, Sir Sorabji Pochkhanawala.
In the year 1969, the Central Bank was officially nationalised.
The bank has launched a variety of self-employment programs to encourage young adults with education to find jobs. Some of its highlighting features are as follows -
Women entrepreneur cell: To locate, inspire, and help prospective women entrepreneurs launch a successful business.
Door-to-door banking service
Create a savings account using a video KYC
Contact No.- 1800 202 1911
Shri Ammembal Subba Rao Pai created Canara Bank, which is renowned for its focus on the needs of its customers.
Canara Bank saw extraordinary growth, particularly after being nationalised in 1969.
The bank has developed a reputation for itself not only in commercial banking but also in several corporate social obligations, including advancing national goals, fostering rural development, boosting rural self-employment through many training institutions, and driving the cause of financial inclusion.
The bank has several notable characteristics, including the following -
Anyone looking to buy or develop a home may take advantage of the appealing home financing programs offered by Canara Bank. The interest rate on a mortgage starts at 8.70% annually.
Four different forms of personal loans are provided by Canara Bank, meeting all of their clients' urgent financial needs at reasonable interest rates.
Customers can obtain a loan against gold jewelry or gold coins utilizing the Swarna Loan or the Gold Loan provided by Canara Bank to cover medical or other expenditures.
Contact No.- 1800 425 0018
One of the nation's top public sector banks is the Union Bank of India. The Government of India owns 83.49 percent of the entire share capital.
The Union Bank was established as a limited corporation on November 11, 1919, with its headquarters in Mumbai, India, and has recently merged with Andhra bank and corporation bank.
The first significant government bank in India to fully adopt a core banking system is the Union Bank of India.
In honour of its expertise in innovation, banking services, financial inclusion, MSME, and human resource development, the Union Bank has won several accolades. Salient features include -
Nari Shakti Product was created to support female businesses. The product is specifically made to finance businesses run by women entrepreneurs by loaning them the amount between INR 2 to 10 lakhs.
In comparison to owning gold physically, Sovereign Gold Bonds are a better option. Since the investor receives the current market value at the point of redemption or early redemption, the amount of gold they paid for is safeguarded.
Contact No.- 1800 208 2244
The State Bank of India is among the most prominent government banks in India of all time.
Following the nationalization of the Imperial Bank of India, the State Bank of India was founded on July 1st, 1955.
Before the Reserve Bank of India was established in 1935, the Imperial Bank of India carried out some central banking duties in addition to its regular commercial banking duties.
Some of its highlighting features in today’s era include the following -
The bank has introduced the Positive Pay System (PPS) for all types of check payments per Reserve Bank of India guidelines. This is an effort to stop fraud committed using altered or tampered checks.
The data on the device is printed using MICR technology, which utilizes a special form of magnetic ink. The machine reads the written information as soon as the instrument is inserted. The MICR method is advantageous because it reduces the likelihood of error, makes clearing checks simple, and speeds up money transfers.
Contact No.- 1800 112 211
Government banks in India also known as Public Service Banks or PSBs, owned and operated by the Indian government and regulated by the RBI are 12 in number.
Since these banks have an extensive network of branches and ATMs throughout the country, they are highly accessible to the regular Indian. Thus, in recent years, the government has taken multiple initiatives to reform PSBs and enhance their financial health.
Overall, these banks play a pivotal role in promoting financial inclusion and offering banking services to the unbanked and underbanked populations.
In spite of these, there is a further requirement for reforms and improvements from the government’s end to ensure long-term sustainability and improved profitability of these government banks in India.
It's crucial to conduct research before selecting a bank.
Yes, other banks include -
A bank that is owned by the government or that the government owns a majority stake in - more than 51% of the bank - is known as a government bank or the public sector bank.
It might be a government bank owned by the central government or the state government.
For instance, the State Bank of India, which has a 52% government stake, is India's largest public sector bank.
Your bank balance will be moved into the newly created bank if the current bank has been merged with another bank.
Your digital financial services may experience some network problems up to that point.
You may still use your old items, such as debit and credit cards, although it is advised that you update them because they can have some problems.
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