BANKING AFFAIRS

Detailed explanation-1: -Such risks should be integrated into the calculation of risk weighted assets. The Committee recommends that the foreign exchange open position limits should carry a 100% risk weight. Introduction of the norm of 90 days for income recognition in a phased manner.

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.

Detailed explanation-3: -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-4: -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.

Detailed explanation-5: -1.1 The Reserve Bank of India constituted on 9 December 1991, a Committee under the Chairmanship of Shri P.R. Nayank, Deputy Governor to examine the difficulties confronting the small scale industries (SSI) in the country in the matter of securing finance.