What was the recommendation regarding entry of foreign banks in India?
Show answer & explanation
Correct answer: D
Explanation
Answer: Encourage foreign banks to expand operations in India
Explanation: The recommendation regarding entry of foreign banks in India was to promote greater participation and expansion of foreign banks in the Indian financial system. This was aimed at increasing competition, improving efficiency, and integrating India’s banking sector with the global economy. Such recommendations were part of broader banking reforms influenced by committees like the Narasimham Committee, which emphasized liberalization and modernization of the banking sector.
Additional Key Facts
Banking sector reforms in India began in the early 1990s.
Foreign banks were allowed to operate with more branches and services over time.
Objectives included better customer service, technology transfer, and competition.
The Reserve Bank of India regulates entry and operations of foreign banks.
Liberalization policies encouraged integration with global financial markets.
Potential Exam-Oriented Questions & Answers
Question: Which institution regulates foreign banks in India?
Answer: Reserve Bank of India
Question: In which decade were major banking reforms introduced in India?
Answer: 1990s