The government has approved recapitalization of Rs 48, 239 crore in.....public sector banks in this fiscal to help them maintain regulatory capital requirements and finance growth plans.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The government has approved recapitalization of Rs 48, 239 crore in____public sector banks in this fiscal to help them maintain regulatory capital requirements and finance growth plans.

A	10
B	12
C	18
D	15

Explanation:

Detailed explanation-1: -It had set aside Rs 20, 000 crore through supplemental grant requests for the recapitalization of PSBs.

Detailed explanation-2: -Bank recapitalization is a method to infuse new and fresh capital into banks to strengthen their balance sheet. To help with the credit flow, the government as well as private institutions use equity and debt instruments to recapitalize the banks. It is very important to ensure the credit growth of the economy.

Detailed explanation-3: -Recapitalisation of Banks is injecting additional capital into state-owned banks to bring them up to capital adequacy standards. The government injects capital into banks that are short on cash using a variety of instruments.

Detailed explanation-4: -Likewise, in the second phase, on April 15, 1980, the then government nationalised six more private banks with a capital of Rs 200 crore. After Independence, the Government of India adopted the socialist path with India’s first Five-Year Plan in 1951, which required a lot of banking sector support to complete.

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