Statements: I. The Reserve Bank of India has recently put restrictions on few small banks in the country. II. The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger in the public sector.

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Statements: I. The Reserve Bank of India has recently put restrictions on few small banks in the country. II. The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger in the public sector. Answer: Statement II is the cause and statement I is its effect

The inability of the small banks to compete with the bigger ones shall not ensure security and good service to the customers, which is an essential concomitant that has to be looked into by the Reserve Bank. I seems to be a remedial step for the same.

Question context

This question is part of 🧩 Logical Reasoning within the broader 🧠 Aptitude Mastery subject and appears in the DemoPaper-Pakistan preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.