Question

What was the motive behind the conversion of the Imperial Bank to the State Bank of India?

• A. To expand its branches across India
• B. To stop its monopolistic power of controlling finances in India
• C. To invest more money by the government
• D. To make public sector banks more efficient

Answer 1

The correct option is B To stop its monopolistic power of controlling finances in India

Initially, the State Bank of India was a private bank known as the Imperial Bank. In 1955, it was renamed as the State Bank of India and converted to a public sector bank. The prime motive behind this conversion was to stop its monopolistic power of controlling finances in India.