The question asks to identify the commission that recommended the establishment of the Reserve Bank of India (RBI). This requires knowledge of the history of central banking in India and the key committees/commissions associated with its formation.
Correct Option: B) The Hilton-Young Commission (Royal Commission on Indian Currency and Finance) recommended the establishment of the Reserve Bank of India in 1926. Its recommendations led to the passing of the RBI Act in 1934 and the subsequent establishment of the RBI in 1935.
The question asks to identify which of the given banks was nationalised in 1969. This requires knowledge of the history of bank nationalisation in India.
Correct Option: C) Punjab National Bank was among the 14 major commercial banks that were nationalised by the Indian government on July 19, 1969, through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969. This move aimed to align the banking sector with the socialist objectives of the government, focusing on rural development and priority sector lending.
The question asks to identify which of the given banks was NOT nationalised in 1980. This requires knowledge of the history of bank nationalisation in India, specifically the two major phases of nationalisation.
Correct Option: B) State Bank of India was nationalised in 1955, much before the 1980 nationalisation drive.
The question asks for the current number of Public Sector Banks (PSBs) in India after various mergers, as per the Reserve Bank of India (RBI). To answer this, one needs to recall the recent consolidation efforts in the Indian banking sector.
Correct Option: D) 12 is the correct number of Public Sector Banks in India after the mergers that were effective from April 1, 2020.
The question asks about the primary economic framework that aligned with the nationalisation of banks in India. To answer this, we need to recall the economic policies adopted by India post-independence, particularly during the period when bank nationalisation occurred.
A) Planned economic development under Five Year Plans. Bank nationalisation was a key policy tool used by the Indian government to direct financial resources towards achieving the socio-economic objectives laid out in its Five Year Plans, such as poverty alleviation, regional development, and support for priority sectors. This was a central feature of India's mixed economy model, which emphasized state intervention and planning.
The question asks about a significant economic impact of bank nationalisation in India, specifically regarding branch expansion. Understanding the primary objectives behind bank nationalisation is key to identifying the correct answer.
A) Rural and semi-urban areas — Bank nationalisation was primarily aimed at achieving social objectives, including extending banking services to the masses and providing credit to priority sectors like agriculture and small-scale industries. This necessitated a rapid expansion of bank branches into rural and semi-urban areas, which were largely unbanked before nationalisation.