BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to bring it down from 38.5% to 25%
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to bring it up from 38.5% to 45%
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to bring it down from 38.5% to 25%
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None of the above
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Detailed explanation-1: -The SLR was 38.5%, and CRR was 15%. To increase the bank’s productivity rates, the committee recommended reducing these high proportions. Accordingly, they suggested reducing SLR rates from 38.5% to 25% and CRR from 15% to 3-5%.
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: -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: -Narasimham Committee for Financial Sector Reforms (1991) has suggested a reduction in SLR, CRR, and priority sector financing reducing it from 40% to 10%.