The Narasimham Committee recommended setting up a three tier banking structure in India. This three tier structure involves one tier having a large number of local and regional banks, another tier involving national banks numbering upto 8 to 10 and another tier consisting of three large banks having presence at a global level. You can read about the RBI – Reserve Bank of India [UPSC Indian Economy Notes] in the given link.

Further readings:

1. Download Indian Economy Notes For UPSC Examination
2. Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19