Which committee was constituted for banking sector reforms?

Correct option is C

Ans:(C) Narsimham Committee

Explanation:

The Narasimham Committee, constituted in 1991, is known for its recommendations regarding banking sector reforms in India. The committee's main focus was to improve the efficiency and stability of the Indian banking system by suggesting measures for banking sector liberalization, strengthening of public sector banks, and better regulation of the financial sector.

Incorrect Options Explanations:

• Chelliah Committee: This committee primarily focused on tax reforms and fiscal policy, not banking sector reforms.
• Kelkar Committee: This committee was focused on tax reforms and fiscal consolidation, similar to the Chelliah Committee.
• Malhotra Committee: This committee was related to reforms in the insurance sector, not banking.

Information Booster:

• Narasimham Committee (1991): It played a vital role in introducing major financial sector reforms like capital market reforms, liberalization of interest rates, and the recommendation for the privatization of public sector banks.
• Current Finance Minister: Nirmala Sitharaman (2025).