what is the difference between scheduled banks and nationalized banks in India?

Question

what is the difference between scheduled banks and nationalized banks in India?
Is investing in scheduled banks as safe as nationalized banks ?
Being an NRI i would like to know this.

Answer 1

A scheduled bank is one that finds a place in the second schedule of Reserve Bank of India. In simple words, these are the list of commercial banks in India which are approved. Thus all the nationalised banks and private sector banks will find a place. Public sector banks are those one where the majority ownership rests with the government of India contrary to the private sector banks, where the ownership rests with private sector investors.
While failure of any scheduled bank is possible, failure of government owned banks is very remote and in that sense, they are safer than the private sector banks.