UPSC CSE Prelims 2018
Statement 2 is correct. In 2017, the Government of India initiated the merger of 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, and State Bank of Travancore) along with Bharatiya Mahila Bank with the parent State Bank of India. This consolidation was a significant reform aimed at strengthening the public sector banking system, improving operational efficiency, and achieving economies of scale.
Statement 1 is incorrect. Capital infusion by the Government of India into public sector banks has not shown a steady increase over the last decade. While significant recapitalization efforts were undertaken in various phases, such as 2010-12 and 2017-19, the overall trend has been intermittent and responsive to specific economic requirements and financial health of the banks, rather than a continuous upward trajectory.
Option (a) is incorrect because Statement 1 is factually inaccurate, as explained above.
Option (c) is incorrect as only Statement 2 is correct, not both statements.
Option (d) is incorrect because Statement 2 is correct, making 'Neither 1 nor 2' an invalid choice.