How can public sector banks be called as government institutions? 1. All public sector banks acquired the public sector characteristic by virtue of a special act passed by the Indian Parliament. 2. Central Government directly and indirectly through other PSUs like LIC of India etc. holds majority of the shareholdings in public sector banks. 3. Several public sector banks are bankers to the government - Central or State - either as a lender or a custodian of government funds. Public sector banks have subscribed to several Government Promissory Notes, Treasury Bills and Bonds and Debentures issued by State/Central PSUs. 4. Public Sector Banks have established and manage Currency Chests throughout the country on behalf of RBI, thus playing a vital role in currency issue and management (printing is the sole prerogative of RBI). 5. Public Sector Banks run clearing houses throughout the country, thereby helping the government manage the nations economy, trade and commerce. 6. Even today, Public Sector Banks have the majority share of the public savings (more than 77%), enjoying the confidence and trust of most of the common citizens. 7. But for the low wages, public sector banks are one of the dream destinations for thousands of aspiring youth in the country. 8. Public Sector Banks as a group are the second largest employer, next only to Indian Railways, providing employment to lakhs of unemployed youth. 9. Public Sector Banks as commercial entities and the staff working in them are one of the major contributors to governments kitty, as they are one of the few honest tax paying groups. 10. Under the guidance and supervision of RBI, public sector banks play a vital role in managing the precious foreign exchange assets of the country.
Posted on: Wed, 23 Apr 2014 01:09:27 +0000
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