NARASIMHAM COMMITTEE

NARASIMHAM COMMITTEE :
- A Committee on Financial System under the chairmanship of M. Narasimham was set up by the Government of India to examine all aspects relating to the structure, organisation, functions and procedures of the financial system and make recommendations with a view to remove the rigidities and weaknesses of the financial system The Committees' recommendations made in Novermber 1991 constitute a landmark in the Banking policy in the country and ushered the banking business into a market oriented system.
- The RBI has been implementing the key recommendations of the committee since January 1992, which encompassed modifying the policy framework, improving the financial soundness of banks, strengthening institutional framework and strengthening of supervisory mechanism.
- A second high-level committee on banking sector reforms under the chairmanship of M. Narasimham was appointed by the Government in 1997, to review the record of implementation of financial sector reforms recommended by the first committee and to chart the reforms necessary in the years ahead.
- The Committee in its report submitted in April 1998 gave wide ranging recommendations to strengthen the banking system and revamp the regulatory supervisory functions.