Banking Reforms
Banking Sector Reforms
Narasimham-I
» The purpose of the Narasimham-I Committee was to study all aspects relating to the structure, organization, functions, and procedures of the financial systems and to recommend improvements in their efficiency and productivity.
» The committee submitted its report to the Finance Minister in November, 1991.
Narasimham-II
» The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India.
» It focused on issues like size of banks and capital adequacy ratio among other things. M. Narasimham, Chairman, submitted the report of the committee in April, 1998.
Damodaran Committee
The committee, headed by former SEBI Chairman M Damodaran, was set-up by the Central Bank to look into the issues of customer services and evaluate the existing system of grievance redressal mechanism prevalent in measures for expeditious resolution of complaints.
Khandewal Committee Report
» The Government constituted a Committee on Human Resources issues of Public Sector Banks (PSBs) under the Chairmanship of Dr A.K. Khandelwal in 2012.
» The committee made 105 recommendations on matters related to Manpower and Recruitment Planning, Training, Career Planning, Performance Management, Reward Management, Succession Planning and Leadership Development, Motivation, Professionalization of HR, Wages, Service Conditions and Welfare, etc.
Nachiket Mor Committee
» The RBI appointed committee on comprehensive financial services for small business and low income under the Chairmanship of Sri Nachiket Mor.
Recommendations of committee are as follows :
• Every adult (above 18 years) of over country should have a bank account by 1 January, 2016. This account will be known as Universal Electronic Bank Account (UEBA)
• Every resident should be issued an account at a time of receiving Aadhaar number (UIDAI) by a bank itself
• It recommends abolition of interest subsidies and loan waivers
• It recommends raising priority sector lending cap for bank to 50% from the current 40%
• It also proposed for creation of a payment bank to provide payment services including credit, insurance, and risk management products