UPSC Prelims 2018 · GS Paper I
Question 96: Economy and Social Development
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 ?
AnswerUPSC’s answer is (b).
The five associate banks of the State Bank of India, along with Bharatiya Mahila Bank, were merged with SBI in April 2017, so statement 2 is correct. Government capital infusion into public sector banks has not risen steadily over the last decade: it has varied from year to year, with large infusions in some years and smaller ones in others. Remember: the 2017 merger covered SBBJ, SBM, SBT, SBP and SBH.
- 1. Capital infusion has fluctuated rather than risen steadily.
- 2. The associate banks merged with SBI in 2017.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: Capital infusion has fluctuated rather than risen steadily.
- Then, if you were sure statement 2 is correct, (d) goes: it leaves 2 out.
What you needed to know: The associate banks merged with SBI in 2017.
Only (b) is left. This one needs every statement.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: capital infusion has not risen steadily.
- (b) Right: only the SBI merger statement is correct.
- (c) Wrong: statement 1 is false.
- (d) Wrong: the merger did take place.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2018, General Studies Paper I, Series A. The paper on upsc.gov.in.