It was in the wake of the Liberalisation in 1991 that it cecame imperative for the government to reform the financial sector in order to reinvigorate the economy. GOI set up committee under the guidelines of Narsimha.
Recommendation:
- It advised the RBI not to use CRR as a principal investment of monetary and credit control rather OMO should be used.
- Progressive reduction of CRR from 5% to 3%
- Advised to pay interest on CRR.
- SLR to be cut at minimum level possible.
- Progressively move towards a market based borrowing programme.
- IT phased out gradually the PSL and to redefine the priority sector with the fixed upper limit.
- Interest rate -decided by market forces.
- of PSB’s to be reduced and a scenario of mergers and acquisition needs to be look into.
- The dual control of RBI and the banking division of the Ministry of finance must go immediately.
- Appointment of the CMO’s of the bank were not to be on the political consideration but on professionalism, merit 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube
