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UPSC 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?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (b) 2 only
Government capital infusion into public-sector banks has fluctuated (₹25,000 cr in 2016-17 but only ₹10,000 cr in 2017-18, etc.); it has not shown a steady year-on-year rise—so Statement 1 is incorrect. The 2017 consolidation in which SBI absorbed its five associate banks (and Bharatiya Mahila Bank) was undertaken precisely to rationalise and strengthen PSBs, making Statement 2 correct ([civilsdaily.com](https://www.civilsdaily.com/answer-key-for-upsc-prelims-2018/))
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Frequently Asked Questions
What is the correct answer to this UPSC 2018 Indian Economy question?▼
The correct answer is option (b): 2 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2018, GS Paper 1, as Question 96. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 47 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.