Banking Awareness - Banking Acts, Reforms & Risk Management
Which of the following is a major reason for bank mergers in India?
Which of the following is a major reason for bank mergers in India?
easy Q12 of 15
Step-by-Step Solution
Step 1: Identify policy intention behind mergers
Mergers are promoted to strengthen banks.Step 2: Link mergers with outcomes
Larger banks benefit from better efficiency and scale.Final Answer:
To improve operational efficiency of banks → Option BQuick Check:
Efficiency and strength are key merger goals ✅
Quick Trick: Efficiency gain = merger objective.
Common Mistakes:
MISTAKES- Assuming mergers reduce regulation or RBI control.
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