Did you know that there are two main types of banks: public sector banks and private sector banks? Public sector banks are controlled by the government and private sector banks are controlled by individuals and companies. When a private sector bank is bought by the government, it becomes a nationalized bank. This process is known as nationalization. Similarly, when the government sells a public sector bank to a person or company, it becomes a privatized bank. This process is known as privatization.
The first bank that was ever nationalized in India was the Imperial Bank of India. It has been run by the government since 1955.
A major wave of nationalization took place in 1969, when 14 private sector banks were nationalized by the government. A second round of bank nationalization took place in 1980.
Today, India has 12 public sector banks, such as Punjab National Bank, Bank of Baroda and Canara Bank. There are also over 20 private sector banks in India, including ICICI Bank, Axis Bank and HDFC Bank.