The Narasimham Committee, 1991 has given which of the following major recommendations?begin{enumerate}item Reduction in the SLR and CRR.item Phasing out Directed Credit Programme.item The determination of the interest rate should be on the grounds of market forces such as the demand for and the supply of fund.item The actual numbers of public sector banks need to be reduced.item Narrow banking concept where weak banks will be allowed to place their funds only in short-term and risk free as.end{enumerate} Select the correct answer using the codes given below:

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Narasimham Committee, 1991 has given which of the following major recommendations?

A	1, 2 and 5
B	1, 3, 4 and 5
C	1, 2, 3 and 5
D	1, 2, 3 and 4

Explanation:

Detailed explanation-1: -SLR was recommended to reduce from 38.5% to 25% and CRR from 15% to 3 to 5%. Phasing out Directed Credit Programme : In India, since nationalization, directed credit programmes were adopted by the government. The committee recommended phasing out of this programme.

Detailed explanation-2: -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.

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