Which of the following department is mainly responsible for policy issues relating to Public Sector Banks (PSBs)?

Correct option is D

Ans. (d)
Sol. The Department of Financial Services (DFS) is the department primarily responsible for policy issues related to Public Sector Banks (PSBs) in India. The DFS operates under the Ministry of Finance and oversees the functioning and governance of public sector banks, financial institutions, and insurance companies.
Explanation of each option:
· (a) Financial Intelligence Unit-India (FIU-IND) – Incorrect, FIU-IND is responsible for the collection and analysis of financial intelligence related to money laundering and terrorist financing, not PSB policies.
· (b) Targeted Public Distribution System (TPDS) – Incorrect, TPDS is related to food distribution and subsidy policies, not banking.
· (c) Centralised Public Grievance Redressal and Monitoring System (CPGRAMS) – Incorrect, CPGRAMS is a grievance redressal system, not related to PSB policies.
· (d) The Department of Financial Services (DFS) – Correct answer. DFS handles policies related to public sector banks, financial institutions, and other financial services.