Reforms & development in the banking sector
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Indian Economy and Indian Financial System — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What was the primary objective of the Narasimham Committee I (1991) recommendations?
To reform the banking sector by reducing statutory pre-emptions, introducing prudential norms, and moving towards a market-driven financial system.
What was the first scheduled commercial bank to be nationalised in India in 1955?
State Bank of India was nationalised in 1955.
Which year marked the introduction of prudential norms for income recognition and asset classification in Indian banking?
1992-93, when the RBI introduced IRAC (Income Recognition, Asset Classification and Provisioning) norms based on Narasimham Committee I recommendations.
What was the main purpose of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970?
It provided legal basis for nationalisation of 14 major banks.
What does the term 'Financial Inclusion' mean in the context of Indian banking reforms?
Financial inclusion refers to providing affordable and accessible financial services such as savings, credit, insurance, and payments to all segments of society, especially the unbanked and underbanked.
How many banks were nationalised in the second wave of bank nationalisation in 1980?
Six banks were nationalised in the second wave in 1980.
What is the significance of the Basel Accords in Indian banking sector reforms?
The Basel Accords (I, II, III) set international standards for capital adequacy, risk management, and liquidity, which Indian banks are required to adopt to strengthen their financial stability.
What is the Cash Reserve Ratio (CRR) and who prescribes it?
CRR is minimum cash banks must hold with RBI; prescribed by RBI.
Video classes for this chapter
More chapters in Module C - Indian Financial Architecture
Master the full IEIFS syllabus
Every chapter of Indian Economy and Indian Financial System — videos, tests, notes and one-liner decks in one place.