UPSC Prelims 2018·GS1·economy·money and banking

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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Last updated 23 May 2026, 3:31 pm IST
  1. A1 only
  2. B2 onlyCorrect
  3. CBoth 1 and 2
  4. DNeither 1 nor 2

Explanation

Statement 1 is incorrect. Capital infusion by the Government of India into public sector banks has not steadily increased over the last decade — the annual amounts have fluctuated significantly, with sharp spikes in some years (e.g., the recapitalisation bond programme of 2017-18) and very low or no infusion in others. A consistent year-on-year rise is not borne out by the data. Statement 2 is correct. To consolidate and strengthen public sector banks, the five associate banks of State Bank of India (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore) along with the Bharatiya Mahila Bank were merged into SBI, effective 1 April 2017. Only Statement 2 is correct, so the answer is B.
economy: With reference to the governance of public sector banking in India, consider the following statements: 1. Capital infusi
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