Difference Between Scheduled Bank and Nationalized Bank

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Scheduled Bank and Nationalized Bank

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Banks are in play to keep our financial terms on our records. At the same time, it assists our basic needs. So, many banks have come into the root. We have several banks all over the world.

Banks are providing different services and control the financial concepts of many companies and individuals. The name of banking in India was developed by the British government. There started the commercial era in India and continues till the present.

The banks in India are regulated by the Reserve Bank of India. Based on the workings and services, banks are categorized as Scheduled and National Banks are in prior including other public and private banks.

The definition of commercial banks is sure, refers to both the banks. This can make banks of some similar kind. Scheduled banks are more ways to improve the structure of the country's economy.

Scheduled Bank vs. Nationalized Bank

Scheduled banks and Nationalized banks, both are related and belong to the public sector. Consumers can utilize financial needs easily. The scheduled bank is mostly a profit-based bank, in which a lot of features are available. Scheduled banks are managed and controlled by private sector people.

Similarly, nationalized banks also generate profit, but their main motive is service to the people. These nationalized banks are totally under the control of the government. Scheduled banks enjoy certain rights such as the right to receive a refinance facility from the apex bank entitled to a currency chest facility. Right to become members of a clearinghouse.

It is relevant to note that scheduled banks and nationalized banks are related since nationalized banks fall under the category of scheduled public sector banks.

Public and private sector banks are included in scheduled banks with a higher expansion rate. However, expansion possibilities in nationalized banks are relatively lower.

Accordingly, the difference between scheduled banks and nationalized banks is that all nationalized banks are scheduled banks. However, all scheduled banks are not nationalized banks. This explains why all nationalized banks are listed in the second schedule of the RBI.

Difference Between Scheduled Bank and Nationalized Bank In Tabular Form

Parameter of Comparison Scheduled Bank Nationalized Bank
Purpose Scheduled banks are with the main purpose called productivity and then profits.
The nationalized banks were in the game with a purpose called a political purpose.


Motive Scheduled banks' main motive is to provide financial assistance for all the weaker sections of society. The nationalized bank's main motive is to provide service to the whole country of India.
Customer Service Scheduled banks are customer-centric service banks because of both public and private investors. Similarly, nationalized banks can also provide better service to their customers.
Governance Governed by multi private and semi-government. Nationalized banks are almost under the governance of the Government
Scheduled banks are nationally recognized for their large number of branches and great service.

Nationalized banks are few in the country, so their operation is of a comparatively small size.
Transactions Volume Many branches make Scheduled banks high transaction volume
Comparatively low volume than that of scheduled banks
Expansion Rate Scheduled banks  are with a higher rate of expansion


Expansion is very limited in this category of banks
Listing in Schedule Scheduled banks are listed in the second scheduled


Nationalized banks are not listed in the second scheduled


Category group All nationalized banks may be called scheduled banks


All scheduled banks are not nationalized banks  


Decision Making Not fully hoped on one roles decision Half of the role in the decision-making made by the government


Examples Canara Bank and so on


Bank of Baroda, Union Bank of India and so on

What is a Scheduled Bank?

The history of Scheduled banks is very wide in the world of banking. The Scheduled banks are listed in the second scheduled RBI called The Reserve Bank of India Act, 1934.

The banks which paid-up capital and raised funds should be not less than 5 LAKHS, which can be listed as a Scheduled Bank. The Scheduled Banks are famed for low-interest loans and membership from the Reserve Bank of India.

Scheduled Banks, must meet certain criteria of paid-up requirements; such criteria include holding an average daily CRR balance (Cash Reserve Ratio) given by the Central Bank. The Reserve Bank of India allows Scheduled Banks to raise debts and loans to the banks paid up at different rates by the bank.

The Scheduled Banks include all commercial banks like international, nationalized and also regional rural banks. Many nationalized banks will be under the influence of these big scheduled banks. This made scheduled banks more popular and economic.

List of Scheduled Banks in India

  • Axis Bank
  • Bandhan Bank
  • CSB bank
  • Federal Bank
  • State Bank of India
  • Bank of Baroda
  • Canara Bank
  • Indian Bank
  • Punjab National Bank
  • UCO Bank

Axis Bank

Axis Bank is known as Axis Bank Limited, which was earlier called UTI Bank. Axis Bank offers financial services to many large and mid-cap companies and other businesses. Amitabh Chaudhry is the key person in this bank. The revenue is around 80,000 crore. It also trades in financial markets.

Bandhan Bank

Badhan Bank is headquartered in Kolkata. It has received a Universal banking license from the Reserve Bank of India. It was founded in the year, 2015. Chandra Shekhar Ghosh is the founder of Bandhan Bank. The revenue of Bandhan bank is around the value of US1.9 billion.

CSB bank

Catholic Syrian Bank, is an Indian private bank, headquartered in Kerala, India. CSB Bank has more than 560 branches and around 400 ATMs across India. CSB was founded in 1920. Fairfax Financial is the owner of CSB Bank.

Federal Bank

Federal Bank, an Indian private sector bank. It is headquartered in Aluva, India. It was founded in the year 1931 as Travancore Federal Bank. It changes its name to the federal bank in the year, 1942. K.P. Hormis is the founder of Federal Bank.

Punjab National Bank

Punjab National Bank is abbreviated as PNB. PNB’s headquarters is in Delhi, India. PNB was founded in the year, 1894. It is the second-largest government-owned bank in India. Dyal Singh Majithia is the founder of PNB. PNB’s total equity is around US12 billion dollars.

UCO Bank

UCO Bank was once called United Commercial Bank. It was established in the year, 1943 in Kolkata. In 2020, it has ranked 80 on the Fortune India 500.

Most of the Scheduled banks have also spread their wings worldwide. Every time it grossed the GDP of India.

What is a Nationalized Bank?

A nationalized bank is defined as a bank in which the government holds more than 50 per cent of the total stack. So, a nationalized bank is also called a Public Sector Bank as it aims to serve.

Public assets are either owned or managed by the state or the federal government.

Nationalized banks were established when banks that had been part of the private sector were consolidated into the public sector.

This makes nationalized banks similar to public banks. In the year 2020 of July, after some mergers, nationalized banks are 12 in India. The Reserve Bank of India controls all these bodies... Also, in previous years, ten banks were merged as four banks.

The government is responsible for defining many of the bank's policies. It also plays an instrumental role in appointing the bank's directors and even deciding which loans to extend to clients.

Nationalized banks can be influenced by changing political parties. Over the year,  RBI has changed a lot under the fame of improvisation. These nationalized banks can fit their rules with the feedback.

List of Nationalized Banks In India

  • Canara Bank
  • Central Bank of India
  • Bank of Baroda
  • Indian Bank
  • Union Bank of India
  • State Bank of India
  • Punjab and Sind Bank
  • Bank of India
  • Indian Overseas Bank
  • Bank of Maharastra

Canara Bank

Canara Bank is the 3rd largest nationalized bank in India. Canara Bank is under the control of the Ministry of Finance and the Government of India. Its headquarters is located in Bangalore, India. It was established in the year 1906 by Ammembal Subba Rao Pai.

Central Bank of India

Central Bank of India, which is called CB of India,  is one of the Nationalized Banks. This bank is one of the oldest and largest banks in India. It is situated in Mumbai, founded in the year, 1911.

Bank of Baroda

BOB (Bank of Baroda) is also one of the Indian nationalized banks, which is headquartered in Vadodara. It has more than 135 million customers and became the fourth largest nationalized bank in India. Bank of Baroda is ranked 1145 on Forbes Global 2000’s list for the year 2019.

Indian Bank

Indian Bank is the popular nationalized bank of India. Similar owners as of all nationalized banks. Indian Bank is with more than 100 million customers. It has some foreign branches from Colombo and Singapore.

Union Bank of India

Mostly called Union Bank, owned by the government of India. Founded in the year 1919 in Mumbai. Seth Sitaram Poddar is the founder of Union Bank. It provides the services like banking, corporate banking, insurance, investment banking, mortgage loans, and also private banking.

State Bank of India (SBI)

State Bank of India is one of the largest banks in the world. SBI is ranked as the world's 43rd largest bank in the world. Also ranked 221st in the fortune global 500 lists. SBI holds the largest role on the side of loans and market share. SBI has many great records, like a huge customer range and the largest serving bank.

Loans rate and transactions rate are also very high in the name of SBI. Credit card users are much bigger on the SBI site every year.

The records of these banks are flowing on the economic situation of India. Every bank has made its mark in improving Indian records.

Differences Between Scheduled Bank and Nationalized Bank In Points

  • Nationalized Banks fall under the category of Scheduled Banks. One is controlled by the only government that is a Nationalized bank and the other is partially governed by different sectors.
  • The branches of the Scheduled bank are huge in sectors, whereas a nationalized bank is limited to some sectors.
  • One can expose many features and transactions in a scheduled bank than that of a nationalized bank.
  • The scheduled bank offers a few more structures that show their main purpose is profit. A nationalized bank is service-minded
  • Their customer service is also quite different in different places.
  • All National banks may be Scheduled banks, but all scheduled banks are not National banks.
  • Customers receive less efficient and less attractive services from a nationalized bank. As an alternative, scheduled banks provide good customer service and more attractive features for their customers.
  • The representation of scheduled banks will always be high in terms of loans. Customers can easily get loans for different reasons.


Both Scheduled banks and Nationalized banks are great places, which are important for the growth of countries' economies. Individually, these banks specialize in accepting deposits and handling loans.

They equally distribute the financial goals of the country. Both are established and reforms for the healthy growth of a great country with financial assistance, which includes other benefits too.

Nationalized banks are one in the group of scheduled banks. Scheduled banks are tremendous with their profits in different branches all over the world. Here the Nationalized banks are greatly heading towards a perfect and general service to their customers. They are never different with their fine motives are goals. Though they are different in their purposes. Scheduled banks and Nationalized banks are on their healthy growth.

Rural banks meet the needs of rural and agricultural segments, while nationalized banks serve the general public. A Nationalized Bank does not offer the same features like a Private Bank, which falls under the scheduled bank category.

In summary, the holding pattern is the key difference between a scheduled bank and a Nationalized bank. The government of India and The Reserve Bank of India hold the responsibility of driving a wealthy country without misleading the sources.


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"Difference Between Scheduled Bank and Nationalized Bank." Diffzy.com, 2023. Sat. 25 Nov. 2023. <https://www.diffzy.com/article/difference-between-scheduled-bank-and-nationalized-bank-55>.

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