Q: Who was the first Governor of RBI after its nationalization?
Answer: C.D. Deshmukh
Explanation: Sir C.D. Deshmukh was the first Indian Governor of RBI and was in office during its nationalization. He played a key role in the transition. He later served as the Union Finance Minister.
Q: The second phase of nationalization in 1980 targeted banks with deposits above?
Answer: Rs. 200 Crores
Explanation: In 1980, the government nationalized six banks with deposits exceeding Rs. 200 crores. This was the second major wave of taking over private banks. It aimed to further strengthen the public sector banking.
Q: Where is the head office of the State Bank of India?
Answer: Mumbai
Explanation: The headquarters of the State Bank of India is located in Mumbai. Mumbai is the financial capital of India and hosts many major bank HQs. SBI has the largest branch network in the country.
Q: Which among these was nationalized in 1980?
Answer: Vijaya Bank
Explanation: Vijaya Bank was nationalized in the second phase in 1980. The others were nationalized in the first phase of 1969. Vijaya Bank has now been merged with Bank of Baroda.
Q: The Imperial Bank of India was formed by merging how many Presidency Banks?
Answer: 3
Explanation: The Imperial Bank was formed in 1921 by merging three Presidency Banks: Bengal, Bombay, and Madras. It acted as a semi-central bank until RBI was formed. It was later nationalized to become SBI.
Q: Nationalization of banks helped in which sector the most?
Answer: Agriculture
Explanation: The biggest beneficiary of bank nationalization was the agriculture sector. It allowed farmers to get loans easily which was earlier very difficult. This supported the rural economy significantly.
Q: Which bank is NOT a nationalized bank today due to its merger?
Answer: Dena Bank
Explanation: Dena Bank has been merged with Bank of Baroda and no longer exists as an independent entity. The others are still functional nationalized banks. Mergers are done to create stronger and more efficient banks.
Q: Who acts as the regulator for nationalized banks in India?
Answer: RBI
Explanation: The Reserve Bank of India (RBI) is the regulator for all commercial banks, including nationalized ones. It sets the rules for interest rates, reserves, and operations. RBI ensures the stability of the entire banking system.
Q: Which of these was a reason for nationalization of banks?
Answer: To remove control of few business houses
Explanation: One major reason was to break the control of a few industrial houses over bank funds. The government wanted to ensure credit is distributed fairly across society. This was part of the 'Social Control' policy.
Q: How many banks were nationalized in the first phase in 1969?
Answer: 14
Explanation: Exactly 14 major banks were nationalized on July 19, 1969. This was the largest such exercise in the history of Indian banking. It brought the bulk of banking assets under state control.