UPSC Prelims 2006 Q30: Indian Economy – Banking & Financial Sector
Which one of the following Indian banks is not a nationalized bank?
- (a) Corporation Bank
- (b) Dena Bank
- (c) Federal Bank
- (d) Vijaya Bank
Answer: (c) Federal Bank
Explanation
Which Indian bank is not nationalised
| Bank | Ownership status |
|---|---|
| Corporation Bank | Nationalised (1980) |
| Dena Bank | Nationalised (1969) |
| Federal Bank | Private sector bank, based at Aluva, Kerala |
| Vijaya Bank | Nationalised (1980) |
Federal Bank was never nationalised; it is a private sector bank, while the other three were taken over in the 1969 and 1980 rounds of nationalisation.
Answer: (c) Federal Bank.
Why each option is right or wrong
- (a) Incorrect. Corporation Bank was nationalised in 1980.
- (b) Incorrect. Dena Bank was nationalised in 1969.
- (c) CORRECT. Federal Bank is a private sector bank and was never nationalised.
- (d) Incorrect. Vijaya Bank was nationalised in 1980.
Key point
Federal Bank is a private sector bank; Corporation Bank, Dena Bank and Vijaya Bank were nationalised in 1969 and 1980.
Remember
Federal Bank: private sector, not nationalised.
Common mistakes
- Assuming every bank with a regional name is nationalised.
- Mixing up the 1969 list of 14 banks with the 1980 list of 6.
- Forgetting that Federal Bank is an old private bank from Kerala.
Exam tip
Nationalised in 1969: 14 large banks like Dena; in 1980: 6 more like Corporation, Vijaya. Federal Bank is private.
Sources
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
- Reserve Bank of India — List of Scheduled Commercial Banks