CSE-2019 | Prelims Daily Quiz 49

Daily Quiz for Civil Services Preliminary Examination 2019

Question:

Consider the following statements about banks in India:

1. Only central government can hold a majority stake in a public-sector bank.

2. The central government holding in public-sector banks cannot drop below 51%.

 

Choose the correct statement/s from the codes given below:

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Correct Answer

B) 2 only

Explanation for the Correct Answer
  • J & K bank is the only bank in India in which a state government holds a majority stake. In all public-sector banks, the majority stake is held by the Centre.
  • As per the Banking Companies Act, the central government holding in public-sector banks cannot drop below 51%.

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