Which committee recommended the formation of a new category of NBFC i.e., NonBanking Financial Company-Micro Finance Institution?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Malegam Committee.
The Rangarajan Committee recommended the formation of a new category of NBFC called the Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI). The committee, officially known as the "Committee on Financial Inclusion," was headed by Dr. C. Rangarajan and made its recommendations to enhance the reach and effectiveness of microfinance in India.