Multiple choice

A bill has been introduced in the Parliament to raise SBI's authorised capital from Rs. 20 crore to

  1. Rs. 50 crore

  2. Rs. 1 crore

  3. Rs. 2000 crore

  4. Rs. 5000 crore
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The State Bank of India (Amendment) Bill was introduced to increase the authorized capital of SBI from Rs. 20 crore to Rs. 5000 crore. This massive increase allowed the bank to raise more capital from the market to meet Basel II norms and support its expansion. It also facilitated the government's transfer of its stake from the RBI to itself.

Keep practicing — related questions