With whom does the ownership of Public sector banks rest?

a. Government of India

b. Jointly with Government of India and share-holders from the public

c. Jointly with Government of India and State Bank of India

d. Jointly with Government of India and Reserve Bank of India

ANSWER: Government of India

Explanation:

Government of India

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by Government.

There are total of 27 PSBs in India [21 Nationalized banks + 6 State bank group (SBI + 5 associates)].

In 2011, IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized.

The Central Government entered the banking business with the nationalization of the Imperial Bank of India in 1955 and the bank was renamed as the State Bank of India.

The other state banks became the subsidiaries of the new bank when nationalized on 19 July 1960.

The next major nationalization of banks took place in 1969 when the government of India, under prime minister Indira Gandhi, nationalized an additional 14 major banks.

The next round of nationalization took place in April 1980. The government nationalized six more banks.