Question

Which of the following statement(s) is/are correct?
(A) CRM, Risk, Revenue and Regulation comprise 4 R's of banking.
(B) Amortized decreasing repayment plan involves declining principal payment and the increasing interest payment on outstanding balance.
(C) Single window system is an introduction of recommendation of B.K Hazare committee.
(D) Imperial Bank of India was nationalized in 1955 and renamed as State Bank of India (SBI).
Choose the correct answer from the options given below:

• (A) only.
• (B) and (D) only.
• (C) and (D) only.
• (A) and (D) only.

Hint:

Under an amortized decreasing plan, total installment cost decreases over time because interest charges decline while the principal payment remains constant.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
This question focuses on banking history, loan repayment methods, and institutional reforms in Indian agricultural cooperative credit systems.

Step 3: Detailed Explanation:
Let us evaluate each statement carefully:
- Statement (A): The 4 Rs in banking generally refer to the strategy for resolving non-performing assets (NPAs): Recognition, Resolution, Recapitalization, and Reforms. The terms listed in (A) do not represent this standard framework, making statement (A) incorrect.
- Statement (B): In an amortized decreasing repayment plan (or equal principal repayment plan), the principal payment remains constant for every installment.
Because the principal is paid down, the outstanding balance decreases, which causes the interest payment to decline over time.
Statement (B) describes this backwards, making it incorrect.
- Statement (C): The B.K. Hazare Committee (1975) analyzed the integration of cooperative credit institutions.
It recommended integrating the short-term and long-term cooperative credit structures into a Single Window System to improve service delivery for farmers. Thus, statement (C) is correct.
- Statement (D): The Imperial Bank of India was nationalized on July 1, 1955, under the State Bank of India Act, and was renamed the State Bank of India (SBI). Thus, statement (D) is correct.

Step 4: Final Answer:
Statements (C) and (D) are correct.