Which of the following can be identified as the proper sequence of banking sector phases in India? 1. It was under private sector control. 2. There was social control. 3. Nationalization happened. 4. There was deregulation.

The correct answer is B. 1, 2, 3, 4.

The banking sector in India has undergone a number of phases since its inception in the 18th century. The first phase was under private sector control, with a few banks being established by British and Indian entrepreneurs. The second phase was characterized by social control, with the government taking over a number of banks in the 1950s and 1960s. The third phase was the nationalization of the banking sector in 1969, when the government took over all major banks in the country. The fourth and final phase has been deregulation, with the government gradually loosening its control over the banking sector since the 1990s.

Here is a brief explanation of each option:

• Option A: 2, 3, 1, 4 is incorrect. This option suggests that social control came before nationalization, which is not the case.
• Option B: 1, 2, 3, 4 is correct. This option suggests that the banking sector was under private sector control, then social control, then nationalization, and finally deregulation. This is the correct sequence of events.
• Option C: 2, 1, 3, 4 is incorrect. This option suggests that social control came before private sector control, which is not the case.
• Option D: 1, 3, 4, 2 is incorrect. This option suggests that deregulation came before nationalization, which is not the case.