The three Presidency Banks namely Bank of Madras, Bank of Bombay and Bank of Calcutta were merged to form which important Indian banking institution?

Introduction / Context:
This question concerns the history of Indian banking. Before independence, three major Presidency Banks operated in different regions. Their merger created a key institution that later evolved into the State Bank of India. Understanding this lineage is essential for candidates preparing for banking and financial sector exams.

Given Data / Assumptions:
- The three banks mentioned are Bank of Madras, Bank of Bombay and Bank of Calcutta.
- The question asks which bank they were merged into.
- Options include New Bank of India, Corporation Bank, Reserve Bank of India, Imperial Bank of India(now SBI), and State Bank of Mysore.
- We assume the standard historical record of Indian commercial banking.

Concept / Approach:
Historically, the three Presidency Banks were merged in 1921 to form the Imperial Bank of India. After independence, in 1955, the Imperial Bank of India was nationalised and renamed State Bank of India. Remembering this timeline is the core concept needed to answer the question.

Step-by-Step Solution:
Step 1: Recall that Bank of Bombay, Bank of Madras and Bank of Calcutta were prominent Presidency Banks during the British period. Step 2: Remember that they were merged to form a single entity called the Imperial Bank of India. Step 3: Later this Imperial Bank of India became State Bank of India, which is why the option mentions now SBI. Step 4: Select Imperial Bank of India(now SBI) as the correct answer.

Verification / Alternative check:
An alternative way to verify is to think about the founding timeline of the Reserve Bank of India. RBI was established in 1935 as the central bank and was not created by merger of commercial banks. New Bank of India and Corporation Bank are separate entities created later. This confirms that only Imperial Bank of India matches the description.

Why Other Options Are Wrong:
New Bank of India is wrong because it was not formed through this merger and has a different history.
Corporation Bank is incorrect; it originated in Udupi and was not linked to the Presidency Banks merger.
Reserve Bank of India is wrong since it was set up as a central bank under a separate act and not by merging commercial banks.
State Bank of Mysore is a former associate bank of State Bank of India, not the direct result of combining the three Presidency Banks.

Common Pitfalls:
Many candidates quickly choose Reserve Bank of India because it is a very familiar institution, ignoring the fact that RBI is a central bank, not a commercial bank formed by merger. Others remember State Bank of India but do not recall its earlier name, leading to confusion. Linking the sequence Presidency Banks to Imperial Bank of India and then to State Bank of India helps avoid these mistakes.

Final Answer:
Therefore, the three Presidency Banks were merged to form the Imperial Bank of India(now SBI).