An increase in cash reserve ratio reduces the excess reserves of commercial banks and limits their credit creating power

Small Industrial Development Bank of India (SIDBI) is a development fiscal establishment in India, headquartered at Lucknow and having its offices all over the country. 

Its purpose is to provide refinance facilities and short term lends to industries and serves as the major financial institution in the Micro, Small and Medium Enterprises (MSME) sector. 

SIDBI also, coordinate the functions of institution occupied in similar activities. It was established on April 2, 1990, through an Act of Parliament. It is headquartered in Lucknow. SIDBI operates under the Department of Financial Services, Government of India.

Thus, the correct option is B.

The government through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks on 19 July 1969. 

D. None of the above

Rajnish Kumar is the new chairman of SBI after Arundhati Bhattacharya.

Punjab National Bank acquired New Bank of India in 1993. Thereafter, no other nationalized bank in India has been merged into another bank.

In a major process of nationalization, seven subsidiaries of the State Bank of India were nationalized via the State Bank of India (Subsidiary Banks) Act, 1959. In 1969, fourteen major private commercial banks were nationalized.

Academy of Development Science located in Maharashtra is a Network of NGOs which sets up grain banks. Previously rural and tribal people used to cure diseases by plants and their products. But deforestation in present day caused damage to those plants. This is the reason why the NGO distributes grains and seeds to rural and tribal people so that they can plant such ayurvedic and rare species.

B.  14

With Mrs. Indira Gandhi’s taking over as the Prime Minister of India, the Indian National Congress rallied for a state takeover of some of the major banks in the country. In what can be deemed a rather hasty move, the government promulgated an ordinance - the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969 - thereby nationalizing all the 14 banks that were under consideration with effect from the midnight of 19 July 1969. As a follow-up to passing the ordinance, the Banking Companies (Acquisition and Transfer of Undertaking) Bill was taken up by the Parliament for discussion. It received a clear majority as well as the assent of the President within a month of issuing the ordinance.

The first bank purely managed bu Indian was Punjab National Bank, established in Lahore in 1895. The Punjab National Bank has not only survived till date but also one of the largest banks in India.

A bank draft is a payment on behalf of a payer that is guaranteed by the issuing bank. A draft ensures the payee  a secure form of payment. During a payer’s reconciliation  of his bank account, he notices a decrease in the account balance because of the money withdrawn from the account.
To obtain a bank draft, a person must first deposit funds equal to the cheque amount with the issuing bank. The bank then generates a cheque to the payee drawn on the bank's own account. The name of the remitter (the person purchasing the cheque) is noted on the check, but the bank itself is the entity making the payment. The cheque is signed by a bank cashier or officer.

The Government of India set up the Industrial Reconstruction Corporation of India (IRCI) in April 1971, under the Indian Companies Act, mainly to look after special problems of sick units’ and provide assistance for their speedy reconstruction and rehabilitation, if necessary, by undertaking the management of the units and developing infrastructure facilities like those of transport, marketing etc.

The Twenty Point Programme was initially launched by Prime Minister Indira Gandhi in 1975 and was subsequently restructured in 1982 and again on 1986. The restructured programme, known as Twenty Point Programme in 2006, became operational with effect from 1st April, 2007.

Small Industries Development Bank of India (SIDBI) is a development financial institution in India, headquartered at Lucknow and having its offices all over the country.

Regional Rural Banks were formed under the R.R.B. Act, 1976, with an objective to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.

First of all Imperial Bank of India was taken over by the Government of India on July $1$, $1955$ and was named as State Bank of India. Along with it eight other (at present seven) were converted as it associate banks and they formed State Bank Group.
$1$. The State Bank of Bikaner and Jaipur. (Earlier Bikaner and Jaipur were separate banks)
$2$. The State Bank of Hyderabad
$3$. The State Bank of Indore
$4$. The State Bank of Mysore
$5$. The State Bank of Saurastra
$6$. The State Bank of Patiala
$7$. The State Bank of Travancore.

The prime or major objective behind the Nationalization of Banks in 1969 was to ensure release of huge amounts held by the Private Banks by way of deposits from the general public for the equitable and inclusive growth of the country's economy and facilitate easy access to credit for all the sectors of the economy.

Indira Gandhi nationalised 14 major banks through an Ordinance on July 19, 1969. These banks held 70-85 per cent of total deposits in banks at the time.

HUDCO started its rural housing activity from 1977-78 by extending loan assistance on affordable terms for construction of rural houses.

The lead bank of a district is that bank which forms the basic day to day policies of that district and which is identified to coordinate implementation of the district credit plan which refers to the credit creation plans of the banks. 

The Government of India nationalized New Bank of India in 1980. Punjab National Bank acquired New Bank of India in 1993.

In order to control credit, CRR and bank rate should be increased and both will assist in control of credit.

The functions of the RRB are as follows:

(1) Granting of loans and advances to small and marginal farmers and agricultural labourers, whether individually or in groups, and to co-operative societies, agricultural processing societies, co-operative farming societies, primarily for agricultural purposes or for agricultural operations and other related purposes;

(2) Granting of loans and advances to artisans, small entrepreneurs and persons of small means engaged in trade, commerce and industry or other productive activities within its area of co-operation; and

(3) Accepting deposits.

but providing inputs to farmers is not its function 

IRDA - Insurance Regulatory and Development Authority of India

The Reserve Bank of India was nationalised with effect from 1st January, 1949 on the basis of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948. All shares in the capital of the Bank were deemed transferred to the Central Government on payment of a suitable compensation.

Nationalisation of banks aimed at all of the provision of adequate credit, for agriculture and small industry and export only, but not big industries.

On July 1969, fourteen major private commercial bank of India were nationalized which included Indian bank, Indian Overseas bank, Canara bank etc in order to increase the efficiency of public sector. 

IFC was established on July 20 1956.

In 1969, fourteen major private commercial banks of India were nationalized which included Indian bank, Indian Overseas bank, Canara bank etc in order to increase the efficiency and effectively of public sector by bringing domestic competition in the sector so that it can compete with the international banking system. 

Rs 2000 crore Indian Aspriation Fund was launched by SIDBI in August 2015 to boost the start-up funds ecosystem in the country. It helps to promote the culture of innovation and entrepreneurship in India at a larger extent. As a consequence it helps to uplift the economic development in India.

SETU means Self Employment & Talent Utilization. SETU helps to support new start-ups and finance small businesses in India. It helps to promote culture of innovation and entrepreneurship.

The start-up schemes provide loans to entrepreneurs of the Scheduled Caste and Scheduled Tribes as well as women. The start-up helps to promote the culture of innovation and entrepreneurship in India. It also promotes economic growth and development.

National Skill Development Corporation (NSDC) operates through partnership with the private sector, Central Ministers and State Government.Over 5.2 million students are trained by NSDC. The main objective of the NSDC is to upgrade skill to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance. The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public Private Partnership Company with the primary mandate of catalyzing the skills landscape in India.

The start-up scheme provides loans to entrepreneurs of the Scheduled Caste and Scheduled Tribes as well as women. Such loans range from Rs 10 lakh to Rs 1 crore.Globally India ranks in third position with 42000 start ups. The start-up helps to promote the culture of innovation and entrepreneurship in India. It also promotes economic growth and development.

Bank rate is the official minimum rate at which the Central Bank of a country (RBI in India) is prepared to rediscount approved bills held by commercial banks in the country.

Gulf crisis, bad performance of public sector and inflation led to the need for New Economic Policy in India. New Economic Policy was adopted by the Central government of India in the year of 1991. It has given emphasis on liberalization, privatization and globalization.

Statutory Liquidity Ratio (SLR) refers to liquid assets that the commercial banks must hold on daily basis as a percentage of their total deposits. SLR is determined by the central bank and is a legal requirement to be fulfilled by the commercial banks. It includes 

Banks were nationalized because of the following reasons:

Private banking saw its introduction in India around mid 19th century and was predominant till Independence.

Commercial banks were under private sectors and were more businessmen friendly.

They lacked the tenacity to serve the poorer section of the spectrum majorly from agro and allied-agro contingent. 

Agriculture was the back bone of Indian economy and lack of financial empathy towards them was deemed reckless and thus a reform was required.

Hence bank nationalisation was sought:

·         To reduce concentration of wealth and economic power

·         To empower the village industries

·         To make more useful use of funds of banks

Indian Banks have strong balance sheets, are well capitalised and well regulated. The capital adequacy ratio of every Indian bank is well above the basel norms and those stipulated by the RBI. Not a single Indian bank has had to be rescued in the aftermath of the crisis. India has a long history of working with Public Sector Banks.

(a) In 1949, Reserve Bank of India(RBI) which is an apex bank that controls the entire banking system of India was nationalized to be the central bank of India. It is the sole agency of note issuing and controls the supply of money in the economy. 

The effect of increased CRR will be reduced or nullified if bank rate is reduced because both are inverse functions. If CRR will increase it contracts credit and if bank rate reduced it expands credit.