Question

In the pre-reforms period (i.e. before 1991), banking scene was dominated by the __________ sector.

• A. private
• B. public
• C. both (a) and (b)
• D. neither (a) nor (b)

Answer 1

Answer: (B)

public

India adopted the socialist form of economy prior to 1991 which involved a lot of government intervention in all the sectors including banking sector which made Indian economy a little conservative compared to other economic structures prevalent then. But after 1991, the government disinvested all its share from most of the sectors including banking sector which brought privatization in banking sector where public sector used to dominate prior to 1991.