Which committee recommended the formation of a new category of NBFC i.e., Non- Banking Financial Company-Micro Finance Institution?

Correct option is B

The correct answer is (b) Malegam Committee.
 The Malegam Committee was set up by the Reserve Bank of India (RBI) in 2010 to study issues and concerns in the microfinance sector.
 The committee's report, submitted in 2011, recommended the creation of a separate category of Non-Banking Financial Companies (NBFCs) called NBFC-Micro Finance Institutions (NBFC-MFIs).
 The goal was to address the unique needs and challenges of microfinance, including regulations on interest rates and transparency in operations.
 This move was aimed at protecting the interests of borrowers and ensuring the sustainable growth of the microfinance sector in India.
Information Booster:
Shah Committee
 The Shah Committee was established to recommend measures for the deepening of the corporate bond market in India.
Kamath Committee
 The Kamath Committee, led by K.V. Kamath, was formed to recommend financial parameters for the resolution plans under the COVID-19-related stress.
Hussain Committee
 The Hussain Committee's primary focus was on the reforms in the Indian banking system to improve the operational efficiency and profitability of banks.