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Consider the following statements regarding the reform policies.
1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state run banks was raised to around 50 per cent
2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI
3. Banks have been given permission to generate resources from India and abroad
Which of the statements is/are correct?
- a)1 and 2 Only
- b)2 and 3 Only
- c)1 and 3 Only
- d)All of them
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the reform policies.1. It ...
- The reform policies led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in banks was raised to around 50 per cent.
- Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI and rationalise their existing branch networks.
- Though banks have been given permission to generate resources from India and abroad, certain managerial aspects have been retained with the RBI to safeguard the interests of the account-holders and the nation.
- Foreign Institutional Investors (FII), such as merchant bankers, mutual funds and pension funds, are now allowed to invest in Indian financial markets.
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Consider the following statements regarding the reform policies.1. It ...
Explanation:
The given statements are related to the reform policies in the banking sector. Let's analyze each statement to determine their correctness.
Statement 1: It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state-run banks was raised to around 50 per cent.
This statement is correct. The reform policies in the banking sector allowed for the establishment of private sector banks, both Indian and foreign. Previously, only public sector banks were in operation. Additionally, the foreign investment limit in state-run banks was increased to around 50 per cent, enabling greater participation of foreign investors in these banks.
Statement 2: Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI.
This statement is also correct. As part of the reform policies, banks that meet certain conditions are now allowed to set up new branches without seeking prior approval from the Reserve Bank of India (RBI). This move aims to promote ease of doing business and encourage the expansion of banking services across the country.
Statement 3: Banks have been given permission to generate resources from India and abroad.
This statement is also correct. The reform policies have granted banks the permission to generate resources from both domestic and international sources. This allows banks to tap into a broader range of funding options, enabling them to meet the growing demands of the economy and facilitate various financial activities.
Conclusion:
All three statements are correct. The reform policies in the banking sector have led to the establishment of private sector banks, increased foreign investment in state-run banks, provided freedom to banks to set up new branches without RBI approval, and allowed banks to generate resources from both India and abroad. These reforms have aimed to enhance competition, attract foreign investment, promote financial inclusion, and support the overall growth of the banking sector in the country.
The given statements are related to the reform policies in the banking sector. Let's analyze each statement to determine their correctness.
Statement 1: It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state-run banks was raised to around 50 per cent.
This statement is correct. The reform policies in the banking sector allowed for the establishment of private sector banks, both Indian and foreign. Previously, only public sector banks were in operation. Additionally, the foreign investment limit in state-run banks was increased to around 50 per cent, enabling greater participation of foreign investors in these banks.
Statement 2: Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI.
This statement is also correct. As part of the reform policies, banks that meet certain conditions are now allowed to set up new branches without seeking prior approval from the Reserve Bank of India (RBI). This move aims to promote ease of doing business and encourage the expansion of banking services across the country.
Statement 3: Banks have been given permission to generate resources from India and abroad.
This statement is also correct. The reform policies have granted banks the permission to generate resources from both domestic and international sources. This allows banks to tap into a broader range of funding options, enabling them to meet the growing demands of the economy and facilitate various financial activities.
Conclusion:
All three statements are correct. The reform policies in the banking sector have led to the establishment of private sector banks, increased foreign investment in state-run banks, provided freedom to banks to set up new branches without RBI approval, and allowed banks to generate resources from both India and abroad. These reforms have aimed to enhance competition, attract foreign investment, promote financial inclusion, and support the overall growth of the banking sector in the country.
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Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer?.
Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer?.
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Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements regarding the reform policies.1. It led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in state runbanks was raised to around 50 per cent2. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI3. Banks have been given permission to generate resources from India and abroadWhich of the statements is/are correct?a)1 and 2 Onlyb)2 and 3 Onlyc)1 and 3 Onlyd)All of themCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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