munotes®
Sign in
Home / KSLU / Solved Papers / B.B.A. LL.B. (Five Years) / Sem 2 / Economic Development in India / 2019 Dec / Solutions

B.B.A. LL.B. (Five Years) Sem 2 Economic Development in India 2019 Dec Question Paper with Solutions

KSLU Solved Question Papers

Economic Development in India

Previous Year Question Paper with Solution

B.B.A. LL.B. (Five Years) · Sem 2

2019 Dec Examination

munotes.in

Mumbai

munotes.in

First published on munotes.in on 21 October 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.

munotes.in is an independent study resource for students of Karnataka State Law University. It is not affiliated with Karnataka State Law University, and is not endorsed by it.

The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by Karnataka State Law University at the 2019 Dec examination.

munotes.in ii

Contents

The questions below are the paper as Karnataka State Law University set it at the 2019 Dec examination, in the order it was set.

MarksPage

munotes.in iii

MarksPage

munotes.in iv

The Paper as Set

The questions in this volume are the questions asked at the 2019 Dec examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 80  ·  20 questions answered

Instructions printed on the paper

  • N.B. (1) Answer all five Units. (2) One essay type question and short note/problems is compulsory from each Unit. (3) Figures to the right indicate marks. (4) Answer should be written either in English or Kannada completely.

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

Read the original question paper

munotes.in v

Q1

Unit I

munotes.in 1

(a)Explain the development of Indian banking system since Independence.[10]

Answer

For full marks, cover: the state of banking at Independence; its development in four phases with dated milestones (1947 to 1969 consolidation; 1969 to 1991 nationalisation and social banking; 1991 to 2014 reform and competition; 2014 onwards inclusion, digital banking and clean-up); the banking structure today; an assessment of achievements and problems; and a conclusion.

At Independence

In 1947 Indian banking was small and fragile. Banks were mostly private and served trade and industry in big cities. Many small banks failed. Villages had almost no banks, and farmers depended on moneylenders. The Reserve Bank of India, set up in 1935, was still privately owned.

Phase 1: 1947 to 1969, laying the legal base

  1. The Banking Regulation Act, 1949 gave the RBI wide powers to license, regulate and inspect banks.
  2. The RBI was nationalised in 1949 and has since been fully owned by the Government.
munotes.in 2
  1. The State Bank of India was established in 1955, taking over the Imperial Bank, to spread banking in rural areas (PIB).
  2. Weak banks were merged or closed, making the system safer.

Phase 2: 1969 to 1991, nationalisation and social banking

  1. Nationalisation. On 19 July 1969, 14 major banks with deposits of over Rs. 50 crore were nationalised "to serve better the needs of development of the economy in conformity with national policy objectives" (RBI). Six more followed on 15 April 1980.
  2. Lead Bank Scheme (December 1969). Each district was assigned a lead bank to plan credit for its area.
  3. Priority sector lending. Banks were directed to lend a fixed share of credit to agriculture, small industry and weaker sections. The Credit Guarantee Corporation of India (1971) guaranteed such loans.
  4. Regional Rural Banks were set up from 26 September 1975 to combine "the rural touch and local feel" with modern banking (RBI).
munotes.in 3
  1. NABARD was set up on 12 July 1982 as the apex body for rural credit.
  2. Branch expansion. Thousands of branches opened in villages and small towns. Credit reached sectors that private banks had ignored.

By the end of this phase, however, banks faced low profits, high pre-emption of funds and rising bad loans. By mid-1985 the CRR and SLR together took over 45 per cent of bank resources (RBI).

Phase 3: 1991 to 2014, reform and competition

  1. Narasimham Committee (November 1991). It recommended a phased cut in the SLR and CRR. It also proposed sound accounting, income recognition and capital adequacy norms (RBI).
  2. New private banks. RBI guidelines of 22 January 1993 opened banking to new private banks, and ten were licensed (RBI).
  3. Freeing interest rates. Lending rates of commercial banks were deregulated in October 1994. Banks began declaring their prime lending rates (RBI).
  4. Second Narasimham Committee (1998) carried banking sector reforms further.
munotes.in 4
  1. Technology. Computerised core banking, ATMs and electronic payment systems spread across banks.
  2. Prudential norms. Banks had to classify loans that stopped paying as non-performing assets and provide for them. They also had to hold capital in proportion to the risk of their assets, in line with international standards.

Phase 4: 2014 onwards, inclusion, digital banking and clean-up

  1. Pradhan Mantri Jan Dhan Yojana (2014). By August 2026, 59.09 crore accounts had been opened, most of them in rural and semi-urban areas (PIB).
  2. UPI (2016). India's instant payment system handled 21.70 billion transactions in January 2026 alone (PIB).
  3. Insolvency and Bankruptcy Code (2016) gave banks a time-bound process to recover from defaulting companies.
  4. Mergers of public sector banks. Ten public sector banks were merged into four with effect from 1 April 2020. India now has 12 public sector banks.
  5. New kinds of banks. Small finance banks and payments banks serve small borrowers and savers.
  6. RRB consolidation. Under "One State One RRB", the number of regional rural banks fell to 28 from 1 May 2025.
munotes.in 5

The structure today

At the end of March 2024 India had 12 public sector, 21 private sector and 45 foreign banks. It also had 12 small finance banks and 6 payments banks (RBI). A large cooperative sector and NABARD support rural credit.

Assessment

Achievements.

  1. Banking has spread from cities to villages.
  2. Savings have been mobilised and directed to agriculture, small industry and weaker sections.
  3. Competition and technology have improved efficiency and service.
  4. Most households now have a bank account and access to digital payments.

Problems.

  1. Bad loans have weakened banks at times.
  2. Public sector banks still face governance and efficiency issues.
  3. Small borrowers without collateral still find credit hard to get.
munotes.in 6

Conclusion. Since Independence Indian banking has moved through four phases. First came a legal base and the State Bank of India. Then came nationalisation and social banking from 1969. Reform and competition followed from 1991, and inclusion and digital banking from 2014. It has grown from a small urban system into a nationwide network reaching most households. Its continuing tasks are sound lending, good governance and credit for the small borrower.

munotes.in 7

The rest of the answers

The first answer is free. The rest come with the KSLU B.B.A. LL.B. Semester 2 solved papers.

You have read the question paper and its first answer in full. Buy the solved papers once and you can read every answer of every solved paper in this semester.

Solved papers: ₹499 Already bought it? Sign in

The question paper itself stays free, and so does the syllabus.

Issue

Found an error in this volume? Report it and we will check it against the paper.

Done!