LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
16 views
in GK by (30.0k points)
closed by
Financial sector reforms in India consist of?
1. Lowering down of CRR and SLR
2. Entry of private firms in Insurance sector
3. Deregulation of rate of interest
4. All of the above

1 Answer

0 votes
by (54.3k points)
selected by
 
Best answer
Correct Answer - Option 4 : All of the above

The correct answer is All of the above.

  • Financial sector reforms:
    • The Narasimham committee was established in August 1991 to give comprehensive recommendations on the financial sector of India including the capital market and banking sector.
    • The major recommendations made by the committee are:
      • To reduce the cash reserve ratio CRR and the statutory liquidity ratio SLR.
      • The committee recommended reducing CRR to 10% and SLR to 25% over the period of time.
      • Recommendations on priority sector lending- the committee recommended including marginal farmers, small businesses cottage industries, etc in the definition of priority sector.
      • The committee recommended fixing at least 10% of the credit for priority sector lending.
      • Deregulation of interest rates- the committee recommended deregulating the interest rates charged by the banks.
      • This was necessary to provide independence to the banks for setting the interest rates themselves for the customers.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...