The correct option is "2 only" because, while the Government of India has occasionally infused capital into public sector banks, this has not been a steady increase over the last decade; instead, there have been fluctuations influenced by the banks' health and financial needs. Statement 2 is accurate as the merger of associate banks with the State Bank of India (SBI) occurs as part of a broader strategy to consolidate and strengthen the public sector banking framework, enhancing operational efficiency and reducing redundancy. This consolidation is aligned with the government's objective to stabilize the banking sector and improve the overall banking environment in the country.