UPSC Previous Year Question | Prelims GS | 2018

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?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer

Correct Answer

2 only

Explanation

Capital infusion into public sector banks has fluctuated over the decade rather than increasing steadily, so statement 1 is wrong. The five associate banks (and Bharatiya Mahila Bank) were merged with SBI in April 2017, so statement 2 is correct.

Topics: banking and finance, economy, psb recapitalisation and sbi merger, public sector banks