UPSC Prelims Practice Questions — RBI okays SBI MF’s acquisition in Bandhan Bank

Q1. Consider the following as conditions attached by the RBI to its approval for SBI Mutual Fund's acquisition in Bandhan Bank: 1. The aggregate holding of SBI Mutual Fund must not exceed 9.99% of the paid-up share capital or voting rights at any time. 2. The approval stands cancelled if the acquisition is not completed within one year of the RBI's letter. 3. If SBI Mutual Fund's holding falls below 5%, fresh prior RBI approval is required to raise it to 5% or more. 4. SBI Mutual Fund must complete the acquisition through a mandatory open offer to all public shareholders of Bandhan Bank. Which of the above is/are NOT a condition correctly attached to the approval?

  1. The aggregate holding of SBI Mutual Fund must not exceed 9.99% of the paid-up share capital or voting rights at any time.
  2. The approval stands cancelled if the acquisition is not completed within one year of the RBI's letter.
  3. If SBI Mutual Fund's holding falls below 5%, fresh prior RBI approval is required to raise it to 5% or more.
  4. SBI Mutual Fund must complete the acquisition through a mandatory open offer to all public shareholders of Bandhan Bank.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 2 and 4

Q2. In its February 2026 approvals, in how many private-sector banks did the RBI clear SBI Mutual Fund to acquire an aggregate holding of up to 9.99%?

  • A. One
  • B. Two
  • C. Three
  • D. Four

Q3. The RBI's prior approval for SBI Mutual Fund's acquisition of shares in Bandhan Bank, and the 2025 Directions governing such acquisitions, derive their statutory authority primarily from which one of the following?

  • A. The Reserve Bank of India Act, 1934
  • B. The Banking Regulation Act, 1949
  • C. The Securities and Exchange Board of India Act, 1992
  • D. The Foreign Exchange Management Act, 1999

Q4. Which one of the following is the sole regulator whose prior approval was the operative clearance enabling SBI Mutual Fund to cross the major-shareholding threshold in Bandhan Bank?

  • A. Securities and Exchange Board of India (SEBI)
  • B. Reserve Bank of India (RBI)
  • C. Ministry of Corporate Affairs (MCA)
  • D. Competition Commission of India (CCI)