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 ?
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Answer: B. Statement 1 is wrong: government capital infusion into public sector banks varied year to year and did not rise steadily over the decade. Statement 2 is correct: the five associate banks and Bharatiya Mahila Bank were merged with SBI in April 2017. So only 2.
Watch for: Big recapitalisation announcements in 2017 make students think infusion always rose.
Why the other options are wrong
- A. Wrong because capital infusion did not rise steadily.
- C. Wrong because statement 1 is false.
- D. Wrong because the SBI merger did take place.
Source to check: Department of Financial Services, Ministry of Finance, annual reports; SBI press release on merger of associate banks, April 2017
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.