Multiple choice

As a part of its commitment to the World Trade Organization (WTO) India has taken various steps to reform its financial sector. Which of the following is one major step in this direction?

  1. Huge budgetary provision for Bharat Nirman Yojana

  2. More and more foreign banks are allowed to open their branches in India

  3. Rebate in rate of personal income tax for Senior Citizen

  4. Introduction of Dividend Distribution Tax (DDT)

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

To align with WTO commitments and global financial standards, India progressively liberalized its banking sector, allowing more foreign banks to establish operations in India to increase competition and efficiency.

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