Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 2 Only
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is incorrect: Under the Reserve Bank of India (RBI) guidelines applicable in 2001-2003, promoter shareholding in private sector banks was required to be brought down to a maximum of 40% (and later phased to lower limits over a timeframe).
- Statement 2 is correct: In 2001, the Government of India permitted Foreign Direct Investment (FDI) up to 49% in private sector banks under the automatic route.
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