Bank credit to the industrial sector has started shrinking. Its decline has been a serious concern as credit growth is essential to revive investment. The problem's Origins lie in the incomplete reforms of the last 25 years. An institutional change that should have followed the 1991 reforms should have been setting up of a resolution corporation for banks. In a market economy with booms and busts, banks should be allowed to be set up and to fail. Today, we cannot shut down banks because there is no proper system to shut them down. Weak loss-making banks continue to need more capital. Which one of the following is the most logical and rational inference that can be made from the above passage?

The theme is "Failing Banks and Resolution Process." a) Option (a) is too broad and does not directly relate to the limitations of the Indian banking system discussed in the passage. b) Option (b) is too generalized and does not specifically address the issues highlighted in the passage. c) Option (c) is precise and accurately reflects the actual inference that can be drawn from the passage. The passage focuses on the limitations of the Indian banking system, particularly the lack of a formal resolution process for failing banks. d) Option (d) is irrelevant to the discussion of failing banks and resolution processes. Therefore, option (c) is the most appropriate inference based on the content of the passage.