With reference to the governance of public sector banking in India, consider the following statements:

1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.

2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct? [UPSC CSP 2018]A.1 onlyB.2 onlyC.Both 1 and 2D.Neither 1 nor 2

Question

With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade. 2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. Which of the statements given above is/are correct? [UPSC CSP 2018]

Accepted Answer

2 only. The correct answer is 2 only. This is UPSC Civil Services Prelims 2018, GS Paper I, Series A, Q96. Question numbers differ between booklet series. The official key for Series A gives option B. Statement 2 is correct, because associate banks were merged with SBI. The Cabinet approved the merger of five associate banks on 15 February 2017. The key marks statement 1 as wrong. The question carries no date and does not say six banks. Read more: Public Sector Bank (PSB) Recapitalisation.

The Indradhanush plan for public sector banks envisaged government capital of what amount, over how many financial years?

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