BANKING AFFAIRS

Detailed explanation-1: -The liberalisation of Indian banking and regulation was done on the basis of recommendations of Narasimham Committee in 1991. The purpose of the committee was to enhance efficiency, productivity and profitability of banks.

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. This proposal had been severely criticized by the RBI employees union.

Detailed explanation-3: -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-4: -Answer: The objective of the Narasimham Committee was to read all the points that relate to the structure, role, organization, and method of the banking systems and to suggest to them how to improve very efficiently.

Detailed explanation-5: -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.