BANKING AFFAIRS

Detailed explanation-1: -Accordingly, they suggested reducing SLR rates from 38.5% to 25% and CRR from 15% to 3-5%. The Government of India implemented credit programmes that compelled banks to set aside funds for the needy and poor sectors at decreased rates.

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: -Recommendations of Narasimhan Committee A phased reduction in statutory liquidity ratio. Phased achievement of 8% capital adequacy ratio. Abolition of branch licensing policy. Proper classification of assets and full disclosure of accounts of banks and financial institutions.

Detailed explanation-4: -The Narasimham committee has recommended that the provisions of the RBI Act, Banking Regulation Act, State Bank of Act, and other laws be reviewed and amended as soon as possible in order to bring them in line with current banking needs.