Nationalization — Set 4
Banking · राष्ट्रीयकरण · Questions 31–40 of 60
Which bank among these was nationalized in the second phase (1980)?
Correct Answer: A. Oriental Bank of Commerce
Oriental Bank of Commerce was nationalized in the second phase in 1980. The other three banks were part of the 1969 group. Oriental Bank of Commerce was recently merged into Punjab National Bank.
The seven subsidiary banks of SBI were nationalized through which Act in 1959?
Correct Answer: A. SBI (Subsidiary Banks) Act
The SBI (Subsidiary Banks) Act, 1959, allowed SBI to take over eight (later seven) former state-associated banks. These banks became associates of SBI and served their respective regions. They were fully merged with SBI in 2017.
Which bank merged with SBI first in 2008?
Correct Answer: C. State Bank of Saurashtra
State Bank of Saurashtra was the first associate bank to be merged with SBI in 2008. This was followed by the merger of State Bank of Indore in 2010. These mergers paved the way for the mega-merger of 2017.
What was the total number of nationalized banks just after the 1980 phase (excluding SBI)?
Correct Answer: B. 20
There were 20 nationalized banks in total after the 1980 phase (14 from 1969 and 6 from 1980). This number stayed constant until the first merger in 1993. Most were large commercial banks with a national presence.
Which bank was NOT an associate of State Bank of India?
Correct Answer: C. Bank of India
Bank of India is a nationalized bank and was never an associate of SBI. State Bank of Mysore and others were regional banks formed from princely states. They all eventually became part of the SBI brand.
After nationalization, which sector saw the highest increase in bank branches?
Correct Answer: C. Rural
Rural areas saw the most significant growth in bank branches following nationalization. The government forced banks to open offices in villages to promote financial inclusion. This radically changed the geography of Indian banking.
What percentage of ownership does the Government of India usually maintain in nationalized banks to keep them 'Public'?
Correct Answer: A. At least 51%
The government must hold at least 51% of the shares to maintain the public sector character of the bank. This ensures that the state retains control over management and policy. Shares above this limit are often traded on the stock market.
The nationalization of insurance companies preceded bank nationalization. In which year was LIC formed?
Correct Answer: C. 1956
Life Insurance Corporation (LIC) was formed in 1956 after nationalizing the life insurance industry. This was part of the same socialist push that later led to bank nationalization. It created a state monopoly in life insurance for decades.
Nationalization of banks helped in the success of which major revolution in India?
Correct Answer: D. Green Revolution
Bank nationalization was crucial for the success of the Green Revolution. It allowed the government to provide easy and cheap credit to farmers for seeds and fertilizers. Without institutional credit, the adoption of new technology would have been difficult.
Which of these banks was nationalized in 1969?
Correct Answer: D. United Bank of India
United Bank of India was one of the 14 banks nationalized in 1969. Federal Bank and Karnataka Bank remained in the private sector. United Bank was eventually merged into Punjab National Bank in 2020.