The Narasimham Working Group (1975) conceptualized the creation of RRBs in 1975 as a new set of regionally oriented rural banks, which would combine the local feel and familiarity of rural problems characteristic of cooperatives with the professionalism and large resource base of commercial banks. Narasimham Committee Report II - 1998. It would be necessary to evolve policies aimed at right sizing and redeployment of the surplus staff either by the way of retraining them and giving them appropriate alternate employment or by introducing a VRS with appropriate incentives. The report of this committee had comprehensive recommendations for financial sector reforms including the banking sector and capital markets. M. Narasimham, Chairman, … This site uses Akismet to reduce spam. The report was tabled in the Parliament on December 17, 1991. The committee recommended the setting up of Regional Rural Banks (RRBs) to compensate for … The Narasimham Committee was established under former RBI Governor M. Narasimham in August 1991 to look into all aspects of the financial system in India. Committee submitted the report in April 1998. In 1998 the government appointed yet another committee under the chairmanship of Mr. Narsimham. The Narasimham Committee II  was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. Very useful and awesome site for all the students!! Standing committees. really hatsoff sir. Mergers should not be seen as a means of bailing out weak banks. The history of Regional Rural Banks in India dates back to the year 1975. Narasimham committee in 1975 recommended the establishment of RRBs (Regional Rural Banks) for development of rural sector and providing services to unserved ones. Narasimham committee. The first committee was for Financial sector reforms while the 2nd was for banking sector. especially the CRR n SLR was really helpful to financial sector, Reall guys good way to increase clicks, ,,good programming, ,,, but you do a good job…, I am preparing for I civils so I want some more information, © Copyright 2009-2019 GKToday | All Rights Reserved, Current Affairs [PDF] - December 1-15, 2020, Current Affairs MCQs PDF - November, 2020, Current Affairs [PDF] - November 17-30, 2020, It did an splendid work in Asset Classification, defining the Non Performing Assets (or bad debts) and recommendations towards transparency in the banking system, It also recommended setting up tribunals for recovery of Loans, tackling doubtful debts, restructuring the banks and allowing entry of the new private Banks. Read More:  Recommendations of Narasimham Committee Report (1991). This issue was taken up by the government and it set up Narasimham Working Group in 1975. Read More:  Narasimham Committee on Banking Sector Reforms (1998), Your email address will not be published. Government appointed Narasimham committee to review the progress of reforms in the banking sector. The Pre-Independence Phase i.e. The idea of establishing Regional Rural Banks was mooted in the Twenty Point Economic Programme of July 1975 to cater to the credit needs of rural people. It focused on issues like size of banks and capital adequacy ratios among other things. Narasimham Committee Report II - 1998 11. • 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 … The report of this committee had comprehensive recommendations for financial sector reforms including the banking sector and capital markets. Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975), and after the legislations of the Regional Rural Banks Act, 1976. Such mergers however can be worthwhile if they lead to rationalization of workforce and branch network otherwise the mergers of public sector banks would tie down the management with operational issues and distract attention from the real issue. Narasimham Committee Report II - 1998. The Narasimham Working Group (1975) conceptualized the creation of RRBs in 1975 as a new set of regionally oriented rural banks, which would combine the local feel and familiarity of rural problems characteristic of cooperatives with the professionalism and … Were formed on October 2, 1975, RRBs were established to extend the amount of credit to the Rural section of the society. Mergers of public sector banks should emanate from the managements of banks with the govt. The RBI introduced the CRAR or Capital to Risk Weighted Asset ratio in 1992 for the soundness of the banking industry. Narasimham Committee, 1975--Working Group On Rural Banks Dantwala Committee, 1978--Committee on Rural Banks CRAFICARD, 1981--Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development Kelkar Committee, 1984--Working Group on Regional Rural Banks The Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector. Constituted in 1991, the Committee submitted two reports, in 1992 and 1998, which laid significant thrust on enhancing the efficiency and viability of the banking sector. The committee was appointed to review the working of the commercial banks and other financial institutions of the country and to suggest measures to remodel … Regional Rural Banks (RRBs) are financial institutions which ensure adequate credit for agriculture and other rural sectors . To solve these issues, the Narasimham Committee in 1974 recommended the establishment of Regional Rural Banks (RRB). RBI also included new prudential reforms for classification of assets and provisioning of the non-performing assets. The committee felt the need of regionally oriented rural banks’ that would address the problems and requirements of the rural people in India. Very useful for banking students… Plz give information to all bank related committees to easy undrstnding. very useful for banking students but it should give more information regarding the impact and a comparative study before and after the implementation of this report. This committee submitted its report on 23rd April 1998. As Chairman, Public Accounts Committee, 1978-79 he participated in a Conference on South Asia convened by the School of Asian and African Studies, … It is very good site and very useful for banking preparation.Now it should also give information about the Insurance sector. The advancement in the Indian banking system is classified into 3 distinct phases: 1. In broad acceptance to this committee, the government announced slew of reforms. Narasimham Committee on Banking Sector Reforms (1998) The purpose of the Narasimham-I Committee was to study all aspects relating to the structure, organization, functions and procedures of the financial systems and to recommend improvements in their efficiency and productivity. In 1975, based on the recommendation of the Narasimham committee, Regional Rural Banks (RRBs) were constituted with an objective of serving the unserved. Finally, regional rural banks have been functioning since 1975 to meet the credit needs of the rural people. The Narasimham Committee laid the foundation for the reformation of the Indian banking sector. Thanks sir, this site is very useful to crack competative exam.but sir, i have some problem about economic and banking termonology. In addition, there are some foreign banks operating in India with little or no restrictions now. It is better known as the Banking Sector Committee. In the year 1975, (based on the recommendation of the Narasimham committee) Regional Rural Banks (RRBs) were constituted with the motive of serving the unserved. Thank u, very useful sites for any competitive exam. RBI started helping the commercial banks to improve the quality of their performance. ADVERTISEMENTS: Highlights of Narasimham Committee Recommendations on Banking Reforms in India! Required fields are marked *. Your email address will not be published. He hails from Mydavolu village of Guntur District in Andhra Pradesh. Narasimham Committee –I was formed in 1991 and Narasimham Committee –II was formed in 1998 and both were related to Banking Sector Reforms. The main aim of the committee was to review the progress of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. The Narsimham committee was of the view that the move towards this revised system should be market driven and based on profitability considerations and brought about through a process of mergers and acquisitions. The committee … As Chairman, Public Accounts Committee, 1978-79 he participated in a Conference on South Asia convened by the School of Asian and African Studies, London University. The purpose of the Narasimham-I Committee was to study all aspects relating to the structure, organisation, functions and procedures of the financial systems and to recommend improvements in their efficiency and productivity. In 1995, Banking Ombudsman scheme was launched with an objective to provide quicker solutions to customers’ complaints. It is better known as the Banking Sector Committee. The banks which were relatively weaker, were recapitalized by the government via budgetary support. It’s the Narasimham committee that . To solve this problem, The Narasimham Committee in 1974 recommended the establishment of Regional Rural Banks (RRB). The banking sector reforms in India were started as a follow up measures of the economic liberalization and financial sector reforms in the country. Narasimham Committee was established under former RBI Governor M. Narasimham on August 14, 1991, to look into all aspects of the financial system in India. before 1947 2. The committee’s report was tabled in Parliament on December 17, 1991: The main recommendations of the committee are […] Standing committees. The Committee, taking note of the formation of BFS, recommends that the process of separating it from the Reserve Bank qua central bank should begin and the Board should be invested with requisite autonomy and armed with necessary powers so as to allow it to develop experience and professional … M. Narasimham, Chairman, submitted the report of the Committee on Banking Sector Reforms (Committee … The Narasimham Committee laid the foundation for the reformation of the Indian banking sector. Some other specialized banks were also set up to promote the activities that were required for the economy. There were several other specialized banks which were constituted during this period to support the development of the economy. The Narasimham Committee  was established under former RBI Governor M. Narasimham in August 1991 to look into all aspects of the financial system in India. But if we examine the recommendations to see which of these have been effectively implemented, a pattern emerges. The primary goal was to reach masses and promote financial inclusion. it is very difficult to understand that still some person alive in this world who working for others without selfintrest. Post Bank of Hindustan, many other banks evolved such as the General Bank of India (1786-1791) and Oudh Commercia… 8 to 10 national banks with a network of branches throughout the country engaged in universal banking. The Narasimham Committee  II  was setup by the Finance Ministry of the Government of India under the chairmanship of Mr M. Narasimham in 1998. It’s the Narasimham committee that conceptualized the foundation of Regional Rural Banks in India. Maidavolu Narasimham (born 1927) was the thirteenth governor of the Reserve Bank of India (RBI) from 2 May 1977 to 30 November 1977. More freedom was given to banks to open branches. great work, Marvellous site…do not close this site ever…i see it daily to keep myself updated…u r great man, Thank you so much for very useful insight. The reforms in the banking industry started in the early 1990s have been continued till now. This committee was set up under the chairmanship of Narasimham with the name “Committee on Banking Sector Reforms” which is also known as “Second Narasimham Committee”. The Narasimham Committee recommendations were forward-looking and are still relevant. The Committee submitted its report to the Government on November 16, … Narasimham Committee I was a nine-member committee set up by the Government of India on 14 August 1991. INTRODUCTION 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 … The recommendations of the Narasimham Committee on rural credit (1975) were a setback in the appraisal of the performance of commercial banks and the co-operative credit structure in extending agricultural credit. 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