BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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8%
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9%
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10%
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11%
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Detailed explanation-1: -Commercial banks are currently required to maintain a minimum CRAR of 8%. As per the recommendations of the Committee on Banking Sector Reforms (Narsimham Committee II) made in 1998, this has to be increased from 8% to 10% in a phased manner with an intermediate target of 9% by March 2000.
Detailed explanation-2: -The RBI targeted to bring the capital adequacy ratio to 9% by March 2001.
Detailed explanation-3: -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-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.