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Which among the following is correct regarding the recommendations of the Narsimhan Committee-I in 1991?
  • a)
    It recommended that the interest rates should be decided by market forces rather than the RBI
  • b)
    It recommended reduction of Cash Reserve Ratio and Statutory Liquidity Ratio in the banking system
  • c)
    The Directed Credit Program was recommended to be discontinued with
  • d)
    Establishment of the Asset Reconstruction Fund to take care of the NPAs in banks
  • e)
    All the above
Correct answer is option 'E'. Can you explain this answer?
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Which among the following is correct regarding the recommendations of ...
The Narsimhan Committee-I was appointed by the then Finance Minister of India, Dr. Manmohan Singh in order to ensure that the public trust could be maintained in the banking system. It recommended the following in this regard:
  • Reduction of CRR and SLR to 3-5% and 15% respectively
  • Phasing out of the Directed Credit Program to extend credit to the poor and needy sectors of the economy
  • Determination of interest rate by supply and demand of the market
  • Reorganization of the banking sector into large, medium and small banks
  • Abolition of dual control of banks by the Reserve Bank of India and the Ministry of Finance
  • Establishment of the Asset Reconstruction Fund to take care of the NPAs in banks
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Which among the following is correct regarding the recommendations of the Narsimhan Committee-I in 1991?a)It recommended that the interest rates should be decided by market forces rather than the RBIb)It recommended reduction of Cash Reserve Ratio and Statutory Liquidity Ratio in the banking systemc)The Directed Credit Program was recommended to be discontinued withd)Establishment of the Asset Reconstruction Fund to take care of the NPAs in bankse)All the aboveCorrect answer is option 'E'. Can you explain this answer?
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Which among the following is correct regarding the recommendations of the Narsimhan Committee-I in 1991?a)It recommended that the interest rates should be decided by market forces rather than the RBIb)It recommended reduction of Cash Reserve Ratio and Statutory Liquidity Ratio in the banking systemc)The Directed Credit Program was recommended to be discontinued withd)Establishment of the Asset Reconstruction Fund to take care of the NPAs in bankse)All the aboveCorrect answer is option 'E'. Can you explain this answer? for Banking Exams 2025 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Which among the following is correct regarding the recommendations of the Narsimhan Committee-I in 1991?a)It recommended that the interest rates should be decided by market forces rather than the RBIb)It recommended reduction of Cash Reserve Ratio and Statutory Liquidity Ratio in the banking systemc)The Directed Credit Program was recommended to be discontinued withd)Establishment of the Asset Reconstruction Fund to take care of the NPAs in bankse)All the aboveCorrect answer is option 'E'. Can you explain this answer? covers all topics & solutions for Banking Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which among the following is correct regarding the recommendations of the Narsimhan Committee-I in 1991?a)It recommended that the interest rates should be decided by market forces rather than the RBIb)It recommended reduction of Cash Reserve Ratio and Statutory Liquidity Ratio in the banking systemc)The Directed Credit Program was recommended to be discontinued withd)Establishment of the Asset Reconstruction Fund to take care of the NPAs in bankse)All the aboveCorrect answer is option 'E'. Can you explain this answer?.
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