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 Civil Services Exam – 2018 Prelims]

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2


Answer: (b)        

Explanation:

  • Capital infusion into public sector banks by the Government of India has not steadily increased in the last decade, there has been a fall in between. Hence, statement 1 is not correct.
  • To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.
  • Merging of banks would help in strengthening the bargaining power of the banks, reduce operational expenditure, enhance capital efficiency, streamline banking operations and reduce their NPA burden. Hence, statement 2 is correct.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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