In which year was the State Bank of India created following the passage of the Imperial Bank of India into state ownership?
- A.1947
- B.1965
- C.1955
- D.1950
Correct answer
Explanation
The correct answer is C, 1955. The All India Rural Credit Survey Committee found that rural credit needed a bank with a nationwide branch network, so Parliament passed the State Bank of India Act, 1955, and the Imperial Bank of India was taken over and renamed the State Bank of India with effect from 1 July 1955. The Imperial Bank itself had been formed in 1921 by joining the presidency banks of Bengal, Bombay and Madras.
Option A, 1947, is the year of independence and of no banking statute of this kind. Option B, 1965, is far too late; by then the State Bank already had its associate banks under the Act of 1959. Option D, 1950, is the year the Constitution came into force, and candidates pick it by association. Note also that 1949 was the year the Reserve Bank was nationalised, which is a different event from the creation of the State Bank.
Read the full article: Bank Nationalisation and Mergers in India: 1949 to 2020
Practice Questions
View allSmall Industries Development Bank of India (SIDBI) was established in which year?
- A.1990
- B.1988
- C.1992
- D.1994
Show answer
SIDBI was set up under the Small Industries Development Bank of India Act, 1989 and began operations in 1990 as the principal financial institution for the promotion, financing and development of micro, small and medium enterprises.
Read the full explanation →How many commercial banks were nationalised in the first round on 19 July 1969?
- A.Six
- B.Eight
- C.Fourteen
- D.Twenty
Show answer
On 19 July 1969 the government promulgated an ordinance nationalising fourteen major commercial banks, each of which held deposits of fifty crore rupees or more.
Read the full explanation →In the second round of bank nationalisation in April 1980, how many banks were nationalised?
- A.Four
- B.Six
- C.Seven
- D.Eleven
Show answer
On 15 April 1980 six private banks whose deposits were two hundred crore rupees or more were nationalised: Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab and Sind Bank, and Vijaya Bank.
Read the full explanation →The Reserve Bank of India was nationalised with effect from:
- A.1 April 1935
- B.1 January 1949
- C.1 July 1955
- D.19 July 1969
Show answer
The Reserve Bank of India began as a shareholders' institution in 1935 and was taken into full government ownership from 1 January 1949 under the Reserve Bank of India (Transfer to Public Ownership) Act, 1948.
Read the full explanation →Which bank was merged with Punjab National Bank in 1993, in the first merger of two nationalised banks?
- A.New Bank of India
- B.Oriental Bank of Commerce
- C.United Bank of India
- D.Nedungadi Bank
Show answer
New Bank of India, one of the six banks nationalised in 1980, ran into heavy losses and was amalgamated with Punjab National Bank in 1993.
Read the full explanation →