Q149
Indian EconomyMoney, Banking & Financial Institutions
Which of the following is not a recommendation of the Narasimham Committee (1998)?
- a.Greater autonomy for the public sector banks
- b.A segregation of the roles of the Reserve Bank as a regulator of banks and as a owner of bank
- c.Merger of large Indian banks
- d.Autonomy to the Development Financial Institutions
Answer: (D) Autonomy to the Development Financial Institutions
The second Narasimham Committee (1998) recommended greater autonomy for public-sector banks, mergers of strong large banks, and separating the RBI's role as regulator from its ownership of banks. It did not call for autonomy for development financial institutions; it wanted them eventually converted into banks or NBFCs.