📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      With reference to the Narasimham Committee Reports,

      consider the following statements: 1.The first Narasimham Committee (1991) focused on financial sector liberalization. 2.The second Narasimham Committee (1998) emphasized the recapitalization of weak banks and reduction of NPAs. 3.Both committees recommended maintaining the Statutory Liquidity Ratio (SLR) at 50% to ensure liquidity. Which of the statements given above is/are correct?
      A 1 and 2 only Correct Answer Incorrect Answer
      B 1 and 3 only Correct Answer Incorrect Answer
      C 2 and 3 only Correct Answer Incorrect Answer
      D 3 only Correct Answer Incorrect Answer
      E 1, 2 and 3 Correct Answer Incorrect Answer

      Solution

      Explanation: •Statement 1: True — The first report (1991) initiated liberalization, autonomy, and prudential norms. •Statement 2: True — The second (1998) focused on NPAs, recapitalization, and consolidation. •Statement 3: False — It recommended reducing SLR (from 38.5% to 25%) to free resources for private lending.

      Practice Next
      More Economic and Social Issues ESI Questions
      ask-question