Which body was empowered by the Cabinet Committee on Economic Affairs to decide procedural issues and allow deviations in strategic disinvestment, and so fixed the best offer round for IDBI Bank?
- A.The Securities and Exchange Board of India
- B.The Core Group of Secretaries on Disinvestment
- C.The Reserve Bank of India
- D.The Department of Financial Services
Correct answer
Explanation
The correct answer is the Core Group of Secretaries on Disinvestment, usually written as the CGD. The Finance Ministry's clarification explains that DIPAM has no internal procedure for the situation in which the highest financial bid comes in below the reserve price, and that the Cabinet Committee on Economic Affairs, in its meeting of 16 August 2017, approved a note on the procedure and mechanism for strategic disinvestment which empowered the CGD to remove difficulties, take policy decisions on procedural matters and allow deviations where the effective completion of a transaction required it. Using those powers the CGD itself settled the procedure for the second or best offer round and reviewed the valuation method. Option A is wrong because the market regulator has no such delegated role in this process. Option C is wrong because the central bank's part was only to treat IDBI as a private bank for regulatory purposes after 2019. Option D is wrong because the clarification credits the decision to the CGD and not to that department.
Read the full article: Finance Ministry Clarifies IDBI Bank Restructuring Process
Practice Questions
IDBI Bank changed from a government owned to a government controlled banking company in which year, after LIC acquired majority stakes?
- A.2015
- B.2017
- C.2019
- D.2021
Show answer
The clarification notes that IDBI was a government owned banking company until that year and became a government controlled banking company once LIC acquired majority stakes in it.
Read the full explanation →By how much did the bid discovered price rise after the disputed tax demands were indemnified?
- A.Rs 627 crore
- B.Rs 1,450 crore
- C.Rs 3,917 crore
- D.Rs 5,280 crore
Show answer
The asset valuer added value for the disputed tax demands, and those demands were indemnified because the qualified bidders had asked for it in common, the purpose being to nudge the offer upwards.
Read the full explanation →Which officer conciliated the Bihar Gramin Bank disputes?
- A.The Banking Ombudsman, Patna
- B.The Assistant Labour Commissioner (Central), Patna
- C.The Registrar of Co-operative Societies, Bihar
- D.The Industrial Tribunal, Patna
Show answer
The two disputes were resolved amicably through that officer conciliation efforts rather than through adjudication. The Banking Ombudsman handles customer complaints against banks and has no role in a dispute between a bank and its employees, so that option is wrong.
Read the full explanation →The two industrial settlements of October 2026 involved which bank?
- A.Bihar Gramin Bank
- B.Dakshin Bihar Gramin Bank
- C.Bihar State Co-operative Bank
- D.Central Bank of India
Show answer
Two disputes between its management and its employees organisations were settled on 22 and 23 October 2026 through the conciliation efforts of the Assistant Labour Commissioner (Central), Patna, working under the Office of the Chief Labour Commissioner (Central) in the Ministry of Labour and Employment.
Read the full explanation →What is the approximate total financial benefit from the two Bihar Gramin Bank settlements?
- A.Rs 10.52 crore
- B.Rs 67.17 crore
- C.Rs 77.69 crore
- D.Rs 92.40 crore
Show answer
The option of Rs 10.52 crore is the benefit under the second settlement alone, signed on 23 October 2026 with the Bihar Gramin Bank Workers Organisation for around 2,500 employees, so it is a part and not the whole.
Read the full explanation →