UPSC Prelims 2009 Q119: Indian Economy – Banking & Financial Sector
In the context of independent India's economy,
which one of the following was the earliest event to take place ?
- (a) Nationalisation of Insurance companies
- (b) Nationalisation of State Bank of India
- (c) Enactment of Banking Regulation Act
- (d) Introduction of First Five - Year Plan
Answer: (c) Enactment of Banking Regulation Act
Explanation
The earliest economic milestone in independent India
Among these four events, one occurred notably earlier than the others.
| Option | Verdict | Reason |
|---|---|---|
| (a) Nationalisation of Insurance companies | Incorrect | Occurred in 1956, later than the earliest event here |
| (b) Nationalisation of State Bank of India | Incorrect | Occurred in 1955, also later than the earliest event |
| (c) Enactment of Banking Regulation Act | Correct | The Banking Regulation Act was enacted in 1949, the earliest among these four events |
| (d) Introduction of First Five-Year Plan | Incorrect | Began in 1951, after the Banking Regulation Act |
Chronology of these events:
| Event | Year |
|---|---|
| Banking Regulation Act | 1949 (earliest) |
| First Five-Year Plan | 1951 |
| Nationalisation of SBI | 1955 |
| Nationalisation of Insurance companies | 1956 |
Answer: (c) Enactment of Banking Regulation Act.
Why each option is right or wrong
- (a) Incorrect. Insurance nationalisation (1956) came after the Banking Regulation Act.
- (b) Incorrect. SBI nationalisation (1955) also came after.
- (c) CORRECT. The Banking Regulation Act (1949) is the earliest among these four events.
- (d) Incorrect. The First Five-Year Plan (1951) came after the Banking Regulation Act.
Key point
Among these four events, the Banking Regulation Act (1949) was the earliest, preceding the First Five-Year Plan (1951), SBI nationalisation (1955), and Insurance nationalisation (1956).
Remember
The earliest of these four events was the enactment of the Banking Regulation Act (1949).
Common mistakes
- Confusing the precise chronological order of these four early independent-India economic milestones.
- Assuming the First Five-Year Plan, often considered foundational, must be the earliest listed event.
- Not knowing the specific 1949 date for the Banking Regulation Act.
Exam tip
Chronology: Banking Regulation Act (1949) → First Five-Year Plan (1951) → SBI nationalisation (1955) → Insurance nationalisation (1956).
Sources
- Banking Regulation Act, 1949
- Planning Commission, Government of India — First Five Year Plan (1951–56)