Multiple choice

Which of the following recommendations were submitted by Narasimham Committee?

  1. Reduction of CRR and SLR

  2. Deregulation of interest rates

  3. Prudential norms

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Narasimham Committee (1991 and 1998) made comprehensive recommendations for banking sector reforms in India. These included reducing CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio), deregulating interest rates, and introducing prudential norms for asset classification and income recognition. All these reforms were aimed at modernizing Indian banking.

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