Question

What is one important contribution of foreign banks operating in India?

Options

• They focus only on rural credit

• They brought modern banking technology and increased competition

• They replaced all public sector banks

• They are restricted to government transactions only

Answer 1

They brought modern banking technology and increased competition

Explanation: 

Foreign banks, as subsidiaries or branches of foreign-incorporated banks, helped introduce the latest banking technology and practices, making Indian banking more competitive and efficient.​