What were the recommendations of Narasimham Committee 2?

The Narasimham Committee II submitted its recommendations in 1998 to the former Finance Minister of India Yashwant Sinha. The Narasimham Committee II made major recommendations for greater autonomy in banking, to reform the role of Reserve Bank of India (RBI), recommended for merger of large Indian banks with the objective of attaining a stronger banking system which could support international trade. You can read about the RBI – Reserve Bank of India [UPSC Indian Economy Notes] in the given link.

The other major recommendations of Narasimham Committee II were related to entry of foreign banks, capital adequacy and tightening of provisioning norms, and regarding non-performing assets (NPA).

Further readings:

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

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