WBCS.LIVE practice question

In which year was the State Bank of India created following the passage of the Imperial Bank of India into state ownership?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. 1947
  2. 1965
  3. 1955
  4. 1950

Correct answer and explanation

Correct answer: 1955

Explanation: The State Bank of India (SBI) was established in 1955 when the Imperial Bank of India was nationalised and brought under state ownership. The move was part of India’s effort to build a strong, state-controlled banking institution to support economic development after independence. Later, in 1959, the State Bank of India (Subsidiary Banks) Act enabled several princely state banks to merge with SBI as its associates. Today, SBI is the largest public sector bank in India, playing a key role in financial inclusion and development.