Public Sector Bank
Public sector banks (PSBs) are banks that are owned and operated by the government of India. These banks are established with the aim of providing banking services to all sections of society and to promote financial inclusion. The primary objective of PSBs is to ensure that banking services are accessible and affordable to all, especially to those who are financially excluded or underserved. Here are some of the features of public sector banks:
Ownership:
Public sector banks are owned and operated by the government of India. The government holds a majority stake in these banks, and the remaining shares are held by public and institutional investors. This ownership structure gives the government control over the operations and policies of these banks.
Social objectives:
Public sector banks have a mandate to promote social objectives, such as financial inclusion, rural development, and priority sector lending. They are expected to provide banking services to all sections of society, especially to those who are financially excluded or underserved.
Government support:
Public sector banks receive support from the government in the form of capital infusion, policy support, and regulatory guidance. The government provides financial assistance to these banks to meet their capital requirements and to support their operations.
Branch network:
Public sector banks have a wide branch network that covers both urban and rural areas. They have a presence in almost all parts of the country, which helps to ensure that banking services are accessible to all.
Priority sector lending:
Public sector banks are mandated to lend a certain percentage of their funds to priority sectors such as agriculture, micro and small enterprises, education, housing, and social infrastructure. This helps to promote economic development and social welfare.
Low-cost banking:
Public sector banks offer low-cost banking services to their customers. They offer savings accounts, current accounts, and other banking services at affordable rates, which makes banking services accessible to all sections of society.
Regulatory oversight:
Public sector banks are regulated by the Reserve Bank of India (RBI), which oversees their operations and policies. The RBI ensures that these banks comply with the regulatory guidelines and maintain financial stability.
In conclusion, public sector banks play an important role in promoting financial inclusion and social welfare in India. They are owned and operated by the government and are expected to promote social objectives such as financial inclusion, rural development, and priority sector lending. They have a wide branch network, offer low-cost banking services, and are regulated by the RBI.
