BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to govern entry of new private sector banks to make the banking sector more competitive
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to reduce the freedom given to banks to rationalize their existing branch network
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to set up more foreign exchange banks
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to lend more easily for industrial development
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Detailed explanation-1: -Detailed Solution. The corrent answer is to govern entry of new private sector banks to make the banking sector more competitive.
Detailed explanation-2: -It recommended a three tier banking structure in India through establishment of three large banks with international presence, eight to ten national banks and a large number of regional and local banks.
Detailed explanation-3: -Minimum capital 200 crore, with a commitment to increase to Rs. 300 crore within three years. In order to meet with this requirement, all banks in private sector should have a net worth of Rs 300 crore at all times. Where the net worth declines to level below Rs 300 crore, it should be restored within reasonable time.
Detailed explanation-4: -The Nariman Committee in 1969 recommended a scheme to unite the commercials banks co-operative banks and government and semi-government agencies to work together for the socio-economic growth of the country. The Lead Bank Scheme was also introduced.
Detailed explanation-5: -Manmohan Singh set up Narasimham Committee to analyze India’s banking sector and recommend reforms. The Committee was set up under the chairmanship of Maidavolu Narasimham. He was the 13th governor of the Reserve Bank of India (RBI) from 2 May 1977 to 30 November 1977.