Multiple choice

In the pre-reform period, the banking sector

  1. functioned in a highly regulated environment

  2. functioned in a manner detrimental to the generally public

  3. concentrated on making huge profit

  4. none of the above

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Before economic reforms (pre-1991 in India), the banking sector operated under strict government control. Nationalized banks faced heavy regulation including controlled interest rates, directed lending priorities, and limited autonomy. This highly regulated environment characterized pre-reform banking in India. Option A accurately describes this regulated framework.

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