GENERAL KNOWLEDGE

Detailed explanation-1: -5. According to which issue of guidelines did the RBI grant approval for the setting up of 13 new privately-owned domestic banks? Subsequent to the issue of guidelines in January 1993 for the entry of new private sector banks, the RBI granted approval for the setting up of 13 new privately-owned domestic banks.

Detailed explanation-2: -In March 1992, Liberalised Exchange Rate Management System (LERMS) involving the dual exchange rate was instituted. A unified single market-determined exchange rate system based on the demand for and supply of foreign exchange replaced the LERMS effective March 1, 1993.

Detailed explanation-3: -The reform policies led to the establishment of private sector banks. Banks were given freedom to set up new branches and determine the rate of interest to be offered on various deposits. Banks have been given permission to generate resources from India and abroad through capital market.

Detailed explanation-4: -According to which guidelines did the Government pick up the entire SBI shares held by the RBI? As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the RBI at a price of Rs. 1, 130.35 a share.