MANAGEMENT

Detailed explanation-1: -The Malhotra Committee recommended the introduction of a concept of professionalization in the insurance sector to make out a strong case for paving the way for foreign capital. In its report submitted in 1994, the committee recommended, among other things, that: Private players are included in the insurance sector.

Detailed explanation-2: -The Malhotra Committee (1994) had recommended that the mandated investment of funds of the general insurance companies should be reduced from the then existing level of 70 per cent to 35 per cent.

Detailed explanation-3: -In its report submitted in 1994, the committee recommended, that: Private players be included in the insurance sector. Foreign companies be allowed to enter the insurance sector, preferably through joint ventures with Indian partners.

Detailed explanation-4: -In 1993, Malhotra Committee was appointed to examine the structure of the insurance industry and recommend changes to make it more efficient and competitive. It was set up with an objective of complementing the reforms initiated in the financial sector.

Detailed explanation-5: -In 1993, the Malhotra committee was led by the RBI governor and the former finance secretary. The main objective of the committee was to create a better financial system.