The Narasimham Committee for Financial Sector Reforms has suggested reduction in

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Q: 64 (IAS/1995)
The Narasimham Committee for Financial Sector Reforms has suggested reduction in

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,104,180,113,104,19,48

keywords: 

{'financial sector reforms': [0, 1, 0, 0], 'priority sector financing': [0, 1, 0, 0], 'narasimham committee': [0, 1, 2, 1], 'financing': [0, 1, 1, 0], 'capital goods sector': [0, 1, 0, 0], 'reduction': [2, 4, 2, 13], 'crr': [0, 1, 0, 0], 'slr': [0, 2, 1, 0]}

The Narasimham Committee for Financial Sector Reforms recommended a reduction in Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), and Priority Sector Financing.

Option 1 only mentions SLR and CRR, but not Priority Sector Financing - this is inaccurate because the committee suggested reduction of all three.

Option 3 lists SLR and Financing to capital goods sector, while Financing to capital goods sector was not a recommendation from the Narasimham Committee, and it misses the CRR and Priority Sector Financing.

Option 4 suggests a reduction in CRR, Priority Sector Financing and Financing to capital goods sector, but again, the reduction in Financing to capital goods sector was not a recommendation made by the committee.

The correct answer is Option 2 because it accurately reflects the recommendations of the Narasimham Committee in relation to SLR, CRR and Priority Sector Financing.