UPSC CSE Prelims
Question 21
With reference to the governance of public sector banking in India, consider the following statements :
- Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
- 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 ?
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: Government capital injections into public-sector banks did not rise continuously each year over the preceding decade. In 2017, five SBI associate banks merged into SBI to consolidate public banking.
Statement/Pair-wise Analysis:
Statement/Item 1: Incorrect - Recapitalisation fluctuated by year and was not a steadily increasing series.
Statement/Item 2: Correct - The SBI associate-bank merger took effect in 2017, consolidating operations into the parent bank.
Option-wise Analysis:
A: Incorrect - includes incorrect statement/item 1; omits correct statement/item 2.
B: Correct - includes all and only the true statements/items.
C: Incorrect - includes incorrect statement/item 1.
D: Incorrect - omits correct statement/item 2.