Financial sector reforms post-1991 included:
Show answer & explanation
Correct answer: D
Explanation
Correct Answer:
All of these
Explanation:
Following the economic reforms of 1991 (LPG policy - Liberalization, Privatization, and Globalization), comprehensive reforms were introduced in the financial sector of India based on the recommendations of the Narasimham Committee. These reforms included allowing the entry of private sector banks to foster competition, strengthening and regulating capital markets, and deregulating interest rates to let market forces play a greater role. Therefore, all the given options are correct components of the post-1991 financial sector reforms.
Additional Points:
The primary goal of the 1991 financial reforms was to make India's financial and banking system more efficient, competitive, and vibrant. During this period, the role of the Reserve Bank of India (RBI) shifted from being a direct controller to a regulatory facilitator.
Important Questions and Answers:
Question: Which committee is primarily associated with the financial sector reforms of 1991 in India?
Answer: The Narasimham Committee.
Question: Which regulatory body was given statutory powers in 1992 to regulate the Indian capital markets?
Answer: Securities and Exchange Board of India (SEBI).