Topic Details (Notes format)

Banking Sector in India

Subject: Economics

Book: Comprehensive Indian Economy

India’s banking network has undergone transformations from nationalization aimed at financial inclusion, to post-1991 deregulation encouraging competition. Key pillars include the RBI’s regulatory oversight, commercial banks (public and private), regional rural banks, and cooperative banks. Topics like financial inclusion (Jan Dhan Yojana), digital payments, non-performing assets, and bank recapitalization are crucial. Prelims often test definitions—like CRR, SLR—while mains might focus on structural reforms, Basel norms, or the role of banking in economic growth. For robust exam prep, track changing regulations and government strategies to revitalize the sector in light of global financial challenges.

Practice Questions

Which of the following measures can reduce a trade deficit?

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What is meant by “credit rating”?

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What is “currency devaluation”?

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What is the objective of the Goods and Services Tax (GST)?

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What is the primary function of the International Monetary Fund (IMF)?

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What is the term for the price at which demand and supply in a market are equal?

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Which of the following sectors contributes the most to India’s GDP?

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Which of the following is considered a public good?

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Which of the following is an example of fiscal policy?

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What does “balance of trade” refer to?

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