Previous Year Question
Which bank was not nationalised during the first phase of bank nationalisation?
Correct Answer: A
Detailed Solution
The first major phase of bank nationalisation in India took place on 19 July 1969, when 14 major Indian scheduled commercial banks were nationalised. The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 was deemed to have effect from 19 July 1969, and its First Schedule lists these 14 banks.
The list explicitly includes Central Bank of India, Bank of India and Canara Bank. It also includes Punjab National Bank, Bank of Baroda, United Commercial Bank, United Bank of India, Dena Bank, Syndicate Bank, Union Bank of India, Allahabad Bank, Indian Bank, Bank of Maharashtra and Indian Overseas Bank. Vijaya Bank was not included in this list.
Vijaya Bank was nationalised later, in the second phase in 1980. The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 came into force with effect from 15 April 1980, and its First Schedule lists six banks—Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab & Sind Bank and Vijaya Bank.
Therefore, remember the key distinction for examinations: 1969 = 14 banks; 1980 = 6 banks; Vijaya Bank = 1980 group.