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The Recommendations of Narasimham Committee - 1 - (1991) : Presented By: Durwesh Matey Saket Deshpande Akshay Doshi

The document summarizes the key recommendations of the Narasimham Committee, which was appointed in 1991 by the Reserve Bank of India to review issues in the banking sector. The committee identified problems like high non-performing assets, low levels of technology, and political interference. Its 1991 report recommended reducing statutory liquidity ratios and cash reserve ratios, redefining priority sectors, introducing capital adequacy ratios, and abolishing branch licensing. It also suggested setting up tribunals for loan recovery and asset reconstruction funds. The committee's recommendations helped lay the foundation for banking sector reforms in India.

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186 views

The Recommendations of Narasimham Committee - 1 - (1991) : Presented By: Durwesh Matey Saket Deshpande Akshay Doshi

The document summarizes the key recommendations of the Narasimham Committee, which was appointed in 1991 by the Reserve Bank of India to review issues in the banking sector. The committee identified problems like high non-performing assets, low levels of technology, and political interference. Its 1991 report recommended reducing statutory liquidity ratios and cash reserve ratios, redefining priority sectors, introducing capital adequacy ratios, and abolishing branch licensing. It also suggested setting up tribunals for loan recovery and asset reconstruction funds. The committee's recommendations helped lay the foundation for banking sector reforms in India.

Uploaded by

21johncena
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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The Recommendations of Narasimham Committee -1(1991)

Presented by: Durwesh Matey Saket Deshpande Akshay Doshi

Emerging Problems post Nationalization


1969- Banks Nationalization Effects1 Increase in the geographical coverage

2 Impressive quantitative 3 losses year after year.

Before observation

Gross and net profit Investment and deposit Average operating cost 40% priority sector Restrictions on pvt.banks

Narasimham Committee

1991 -RBI appoint by M. Narasimham


Review-

low technological level in operations


High NPAs low levels of motivation

Constituted in 1991 submitted two reports, in 1992 and 1998

foundation for the reformation

Problems Identified By The Narasimh Committee

Higher rates of CRR and SLR

Directed credit programmes


Political and Administrative interference Subsidizing of credit Inefficiency Out dated technology Mounting expenditures of banks

Narasimham Committee Report I 1991recommendations :

Reduction in SLR & CRR


Directed credit programmes and redefinition of the priority sector Capital adequacy ratios ("CAR") Uniform accounting practices

Tribunals recovery loans Asset Reconstruction Funds (ARFs) Abolition of branch licensing

Recruit officers
Revised procedure for selection

Pvt. sector banks and weaker bank

Expand their network by opening new branches Deregulation of RBI


Other recommendations

Banking performance
Banking performance over period of time

Deposit over period of year

Rbi.org.in

Reference
http://.Recommendations_of_narasimham_committee

http://www.rbi.org.in/scripts/PublicationReportDetails.asp x?UrlPage=&ID=251

http://www.banknetindia.com/banking/univ.htm. Retrieved 21 February 2011. ^ "RBI Action Taken Report". Rbi.org.in.


http://www.indianexpress.com/res/web/pIe/ie/daily/19981 031/30450044.html. http://www.india-today.com/itoday/20001211/chid.shtml.

Thank-you For Your Time

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