UPSC Prelims 2001 · General Studies
Question 4: Economy and Social Development
Which of the following committees examined and suggested Financial Sector Reforms?
AnswerThe answer is (d).
The Narasimham Committees examined and recommended financial sector reform: the 1991 Committee on the Financial System and the 1998 Committee on Banking Sector Reforms, both chaired by M. Narasimham. They proposed lower statutory reserve requirements, freer interest rates, prudential norms, capital adequacy and a stronger, more competitive banking system. Remember Chelliah for tax reform and Narasimham for banking and finance.
Why each option is right or wrong
- (a) The Abid Hussain Committee looked at small-scale industry, not the financial sector.
- (b) The Bhagwati Committee is not associated with financial sector reform.
- (c) The Chelliah Committee dealt with tax reform.
- (d) Right: the Narasimham Committees of 1991 and 1998 dealt with the financial system and banking.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2001, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.