Financial Awareness - Risk, Stability & Emerging Finance
The Narasimham Committee I, constituted in 1991, primarily recommended which of the following to improve the banking sector?
The Narasimham Committee I, constituted in 1991, primarily recommended which of the following to improve the banking sector?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand the focus of Narasimham Committee I
This committee was set up to address banking sector inefficiencies in the early 1990s, focusing on NPAs and deregulating interest rates.Step 2: Analyze the options
Basel III norms came much later; monetary policy framework relates to other committees; fraud detection is unrelated here.Final Answer:
Deregulation of interest rates and reduction of Non-Performing Assets (NPAs) → Option DQuick Check:
Narasimham Committee I = NPAs and interest rate deregulation ✅
Quick Trick: Narasimham I = NPAs and interest rate deregulation.
Common Mistakes:
- Confusing Narasimham I with Narasimham II's capital adequacy focus.
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