The report of. The Committee suggests that pending the emergence of markets in India where market risks can be covered, it would be desirable Narasimham Committee Report II - 1998. and V Sankaranarayanan (1990) `Regional rural banks ... Financial Systems, 1991 (Narasimham Committee) stressed the poor financial health of the RRBs to the exclusion of every other performance indicator. Regional Rural Banks (RRBs) are financial institutions which ensure adequate credit for agriculture and other rural sectors . In the spirit of the RBIâs approach paper on differentiated Banks, the Committee recommends that the RBI may also seriously consider licensing, with lowered entry barriers but otherwise equivalent treatment, more functionally focused banks like Payments Banks, Wholesale Consumer Banks, and Wholesale Investment Banks. Six Special Recovery Tribunals have been set up. Report a Violation 11. Japan is an example in this respect where a number of bank mergers done in the past have backfired. But too much delay in taking such policy decisions would jeopardies the viability of the entire banking sector. But it did not prescribe by what percentage it should be raised. The Narasimham Committee on rural credit recommended the establishment of Regional Rural Banks (RRB) on the ground that they would be much better suited than the commercial banks or co-operative banks in meeting the needs of rural areas. Based on the recommendations of the Narasimham Committee Report (1992), reforms were initiated in 1993 with a view to improve the financial health and operational viability of RRBs. Recommendations of Narsimham Committee on RRBs The Narsimham Committee in 1990s also reiterated that the RRBs should be merged with the sponsor banks. It is better known as the Banking Sector Committee. 2 lakhs has been fully decontrolled. Account Disable 12. Thus the second report submitted by Narasimham Committee has touched many new areas of banking sector for their necessary reform although in some areas the Committee’s recommendations were almost identical to the one it had submitted in its first report in 1991. Which of the following issues were addressed by Narasimham committee? To promote the healthy development of the financial sector, the Narasimhan committee made recommendations. • The 2nd Narasimham Committee was set up by P.Chidambaram as Finance Minister of India in December 1997 • It is also known as the Committee on Banking Sector Reforms • The Committee submitted the report to the Finance Minister Yashwant Sinha in April 1998 12. Narasimham Committee on Banking Sector Reforms - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. In 1998 the government appointed yet another committee under the chairmanship of Mr. Narsimham. The Committee on Financial Systems, 1991 (Narasimham Committee) The study has shown stress on the poor fin ancial health of the RRBs to the exclusion of every other performance indicator. By March 1996, all public sector banks had attained the ratio of 8%. Narasimham Committee Report II - 1998. INTRODUCTION The 1st Narasimham Committee was set up by Manmohan Singh as India’s Finance Minister on 14th August 1991 A nine member committee was set up under the chairmanship of M. Narasimham, a former Governor of Reserve Bank of India The Committee submitted its Report to the Finance Minister NARASIMHAM in November 1991 COMMITTEE REPORT - I In April 1992 RBI fixed CAN at 8%. It submitted its report in April 1998. Elaborating on the merger of strong banks the report observed that the mergers would be “meaningful and useful” only when they were not a mere arithmetical merger of balance sheets and staffs. 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