Question

Which of the following statements is correct regarding the nationalisation of commercial banks in India?

• A. One of the purposes of nationalisation of the banks is to diversify the flow of bank credit towards the priority sector consisting of agriculture and allied activities, small-scale industries and small businesses.
• B. Nationalisation of commercial banks is done to attract FDI in India.
• C. Nationalisation of commercial banks is done to eliminate Nationalisationconcentration of economic power in the hands of RBI
• D. Nationalisation bank to be the was State Bank of India on 1 January 1949.

Answer 1

The correct option is A

One of the purposes of nationalisation of the banks is to diversify the flow of bank credit towards the priority sector consisting of agriculture and allied activities, small-scale industries and small businesses.

One of the purposes of nationalisation of commercial banks is to diversify the flow of bank credit towards priority sector consisting of agriculture and allied activities, small-scale industries and small businesses.