Multiple choice

Merger

Directions: Some words in the news item below have been highlighted. Select the best contextual meaning of the related words.

The government seems to be preparing the ground for the merger of public sector banks (PSBs). After asking small banks to coordinate with large ones on key areas, it has now merged 19 regional rural banks (RRBs) into eight entities, Despite reservations by the Reserve Bank of India (RBI). It plans to merge more rural banks by the end of this financial year.

RBI has expressed its displeasure at the move, saying the finance ministry didn’t keep it in the loop while going ahead with the mergers. The ministry, however, argued that it followed the Regional Rural Banks Act, which didn’t mandate consultation with the central bank on such mergers.

  1. Mixture

  2. Union

  3. Monopoly

  4. Separation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The government is combining public sector banks to create larger, unified organizations. 'Merger' means the combining of two or more organizations into one. Option B (Union) is correct - a merger creates a union or combination of separate entities into a single organization.

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