Bank Mergers — Set 4
Banking · बैंक विलय · Questions 31–40 of 50
The Reserve Bank of India was established as a private bank but was later nationalized in which year?
Correct Answer: D. 1949
The RBI was nationalized on January 1, 1949, following the RBI (Transfer to Public Ownership) Act, 1948. It originally started as a shareholders' bank with a capital of 5 crore rupees. Nationalization ensured it worked towards the developmental goals of independent India.
Which of the following is a major challenge typically faced during the integration phase of a bank merger?
Correct Answer: A. Harmonization of IT systems
The correct answer is 'Harmonization of IT systems'. Merging two banks requires the complex task of integrating different IT platforms and software. This is crucial for providing seamless services to customers across all branches. Technical glitches during this phase can lead to significant operational disruptions.
In the context of bank mergers, what does the term 'Anchor Bank' signify?
Correct Answer: C. The large bank into which smaller banks are merged
The anchor bank is the leading entity that survives the merger and absorbs the other participating banks. For example, in the 2020 merger, PNB was the anchor bank for OBC and United Bank. It usually retains its name and corporate identity after the consolidation.
Which of the following banks was NOT part of the 10-bank mega merger announced in 2019?
Correct Answer: C. Bank of Maharashtra
Bank of Maharashtra was one of the six public sector banks that were left out of the 2019 merger plan. It continues to operate as an independent nationalized bank. The government decided to keep some banks independent to maintain regional focus.
Which bank was merged with State Bank of India in 1921 to form the Imperial Bank of India?
Correct Answer: A. Bank of Bengal, Bank of Bombay, and Bank of Madras
The three Presidency Banks were merged in 1921 to create the Imperial Bank of India. This was the most significant merger in pre-independence Indian banking history. The Imperial Bank later became the State Bank of India in 1955.
Which of the following banks merged with State Bank of India along with the associate banks in 2017?
Correct Answer: C. Bharatiya Mahila Bank
Bharatiya Mahila Bank, which was established in 2013, was merged into SBI in 2017. This happened simultaneously with the merger of the five remaining associate banks. The objective was to bring women-centric banking to a larger scale.
Which bank's merger with the Oriental Bank of Commerce in 2004 was a result of a financial crisis in the private sector?
Correct Answer: A. Global Trust Bank
Global Trust Bank was merged into OBC after its net worth became negative due to bad loans. This was a forced merger orchestrated by the government and the RBI. It ensured that the depositors did not lose their savings.
How many public sector banks remained in India after the mega-merger of April 2020?
Correct Answer: D. 12
Following the consolidation of ten banks into four, the total number of PSBs in India was reduced to 12. This includes SBI and the newly consolidated entities like PNB and Canara Bank. This was done to create fewer but globally stronger financial institutions.
The merger of which bank with Indian Bank in 2020 created a strong presence in the North and East of India?
Correct Answer: A. Allahabad Bank
Allahabad Bank was merged into Indian Bank, combining their respective strengths in different regions. Allahabad Bank was established in 1865 and was the oldest joint stock bank in India. The merged entity became the seventh largest public sector bank.
Which bank was the first to merge with State Bank of India in the 21st century?
Correct Answer: C. State Bank of Saurashtra
State Bank of Saurashtra was merged into SBI in August 2008. This started the modern wave of consolidation within the SBI group. It was followed by the merger of State Bank of Indore in 2010.