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Question No. 170Interactive Test Mode
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Q170. 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?

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?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2018 • Indian Economy

Correct Answer: Option (B) — 2 only

Concept & Option Breakdown

Standard Reference Verified

Statement 1 is incorrect: Government capital infusion into Public Sector Banks over the decade fluctuated depending on NPA pressures and fiscal conditions, showing a cyclical rather than steady upward trend. Statement 2 is correct: In 2017, five associate banks (State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore) and Bharatiya Mahila Bank were merged with the State Bank of India (SBI).

Elimination Heuristic & Exam Approach

Statements claiming 'steadily increased' or 'steadily decreased' over an entire decade in economic trends are almost always false due to cyclical market and policy variations.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2018 (Q170)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (B) — 2 only

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Frequently Asked Questions — UPSC Prelims 2018 Q170

What is the official answer for UPSC Prelims 2018 GS Paper I Question 170 (Indian Economy)?

The official UPSC answer key for this 2018 Indian Economy (Banking & Financial System) question is Option (B): "2 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2018 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

Statements claiming 'steadily increased' or 'steadily decreased' over an entire decade in economic trends are almost always false due to cyclical market and policy variations.

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