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Discussion

The Narsimham Committee for financial sector reform has suggested reduction in:

  • A.SLR and financing to capital goods sector.
  • B.SLR and CRR 
  • C.SLR, CRR and priority sector financing
  • D.None of these

Answer: C

The Narsimham Committee for financial sector reform was constituted under N.Narsimham, former governor of RBI in 1999. Committee has suggested reduction in statutory liquidity ration and cash reserve ratio. It has also suggested that statutory liquidity ratio should be reduced upto 25%. Lending priority sector should also be reduced.

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