M NARASIMHAM COMMITTEE
- April 24, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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M NARASIMHAM COMMITTEE
Subject : Economics
Context : ‘Father of banking reforms’: Ex-RBI governor M Narasimham passes away at 94.
Concept :
- Narasimham Committee I (1991) – Consolidation would make economic and commercial sense where the whole would be greater than the sum of its parts, and have a “force-multiplier effect.”
- It also recommended local banks whose operations would be confined to specific regions, and rural banks.
- Narasimham Committee II (1998) -It emphasised that consolidation process in PSBs needed to be based on synergies, and locational and business-specific complementarities.