The Narasimhan Committee 1991 recommended the reforms with respect to the banking sector. These reforms are also known as:

Correct option is A

The Narasimhan Committee (1991) recommended first-generation reforms in the banking sector to address inefficiencies, enhance profitability, and align the Indian financial system with global standards. These reforms were part of the broader economic liberalization policies initiated in 1991.
Key Recommendations by the Narasimhan Committee (1991):
1. Reduction in Statutory Pre-emptions:
· Lowering Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) to enhance credit flow.
2. Interest Rate Deregulation:
· Allowing market-driven interest rates.
3. Strengthening Capital Base:
· Ensuring adequate capital adequacy for banks.
4. Autonomy for Public Sector Banks:
· Granting operational and financial independence.
5. Introduction of Prudential Norms:
· Standards for asset classification, income recognition, and provisioning.
6. Promoting Competition:
· Encouraging the entry of private sector banks and foreign banks.
Information Booster:
· First-Generation Reforms: Focused on liberalization, privatization, and globalization (LPG framework).
· Second-Generation Reforms (1998): Recommended deeper reforms, including improving governance, technological modernization, and risk management.
Additional Knowledge:
· The reforms laid the foundation for a more robust and competitive banking system in India.
· Financial sector reforms helped integrate India with the global economy and improve financial stability.