Banking Sector in India: UPSC Previous Year Questions (Indian Economy)
2 previous year UPSC Prelims questions on Banking Sector in India (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
Showing 1–2 of 2 questions
UPSC 2006Indian Economy · Banking Sector in India
Q1. Which one of the following Indian banks is not a nationalized bank?
Explanation
Nationalized Banks are banks in which the majority stake is held by the government of India. Nationalization was carried out in two major waves (1969 and 1980) to bring a larger portion of the banking sector under government control, with the aim of promoting social and developmental objectives. Private Sector Banks are banks in which the majority stake is held by private individuals, companies, or institutions.
Option (c) is correct: Federal Bank is not a nationalized bank. It is a private sector bank headquartered in Aluva, Kerala.
UPSC 2006Indian Economy · Banking Sector in India
Q2. Which one of the following is the correct statement? Service tax is a/an:
Explanation
An indirect tax is one that can be partially or completely shifted from the person who pays it to others. Service Tax falls under this category as it is imposed on service providers but is typically shifted to the service recipient. Other examples are:
Goods and Services Tax (GST), Customs Duty, Excise Duty, Service Tax (before GST), Value Added Tax (VAT) (before GST). A direct tax is one that the taxpayer is obligated to pay directly to the government and cannot be passed on to someone else. Examples include income tax and property tax. Examples of Direct Taxes in India are Income Tax, Corporate Tax, Wealth Tax (now abolished), Capital Gains Tax, Property Tax. Service Tax was an indirect tax imposed by the Central Government on services provided in India until it was subsumed under the Goods and Services Tax (GST) on July 1, 2017. It was introduced under the Finance Act of 1994 and was applicable to various services, including those offered by travel agents, restaurants, and cable providers.
Answer key for these questions
Q
UPSC year
Correct answer
1
2006
(c) Federal Bank
2
2006
(b) indirect tax levied by the Central Government.
Frequently asked questions
How many previous year UPSC questions are there on Banking Sector in India?
This page covers 2 previous year UPSC Prelims GS Paper-I questions on Banking Sector in India (Indian Economy), asked from 1997 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Banking Sector in India?
Questions on Banking Sector in India (Indian Economy) are available for 24 years, from 1997 to 2025. Use the Year filter to practise a single paper.
