Question

Which committee recommended the establishment of Regional Rural Banks?

• A. Narasimham Committee
• B. Goiporia Committee
• C. Mahalanobis Committee
• D. Sarakaria Committee
• E. None of the above

Answer 1

The correct option is A

Narasimham Committee

In the early 1970s, there was a feeling that even after nationalization, there were cultural issues which made it difficult for commercial banks, even under government ownership, to lend to farmers. This issue was taken up by the government and it set up Narasimham Working Group in 1975. On the basis of this committee’s recommendations, a Regional Rural Banks Ordinance was promulgated in September 1975, which was replaced by the Regional Rural Banks Act 1976.