BANKING AFFAIRS

Detailed explanation-1: -The Narasimham Committee had recommended the creation of Regional Rural Banks. Regional Rural Bank (RRB) is also known as a small man’s bank. It was recommended for the development of the rural economy in India.

Detailed explanation-2: -The Narsimham committee conceptualised the creation of RRBs in 1975 as a new set of regionally oriented rural banks, which would combine the local feel and familiarity of rural problems characteristic of cooperatives with the professionalism and large resource base of commercial banks.

Detailed explanation-3: -What are the recommendations of the Narasimham Committee? The recommendations of the Narasimham Committee advised forming three large banks with an international presence, eight to ten national banks, and a significant number of regional and small banks in India.

Detailed explanation-4: -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.

Detailed explanation-5: -Manmohan Singh, established the Narasimham Committee to examine India’s banking sector and recommend reforms. Narasimham Committee I was a nine-member committee appointed by the Government of India on August 14, 1991.