Question

Banking sector reforms were announced in ________.

• A. 1990
• B. 1991
• C. 1992
• D. 1993

Answer 1

The correct option is C 1992

B.

The banking sector reforms were announced in the year 1991 by the first Narasimhan Committee. On the basis of the recommendations of this committee, the government started the financial sector liberalization programme. This programme included liberalization of the interest rates, reduction of government control in the banking sector and setting up of a market regulatory framework. Also, the restrictions against the foreign direct investment were also removed.