Economic Committees Flashcards
Need of an organised money market in the country
Chakravarthy Committee (1985) (Review of the Working of the Monetary System)
Laid the blueprint for the development of an organised money market
Discount and Finance House of India Ltd (DFHI) was set up (1988) on its recommendation
Vaghul Committee (1987) (Working Group on Money Market)
Introducing the terms Repo and Reverse Repo
Urjit Patel Committee
Note: Terms introduced by RBI in April 2014
Instruments themselves were introduced in 1992 and 1996 resp.
Conversion of the AIFIs (All India Financial Institutions) into Development Banks
Narsimhan Committee on the Financial System (CFS), 1991
Universal banking in India
S H Khan Committee on Development Financial Institutions (DFIs), 1998
Promoting a separate All India Financial Institution for providing financial assistance to tourism-related activities/projects
National Committee on Tourism (Yunus Committee)
Recommending changing RBI Financial year from July-June to April-March
Jalan Committee (Set up by the RBI on the Economic Capital Framework, 2019)
Assest monetisation
Vijay Kelkar committed in 2012
Report on “ industry planning and licensing policy submitted to the planning commission underlining the point that it would be difficult to undertake credit planning unless the linked control of industry and banks in the same hands is snapped by nationalisation of banks
The Hazari committee
Committees that exposed the nexus between the banks and the big business
The Mahalanobis committee on the distribution of national income in India and the Vivian Bose commission
(Also in some way the Hazari Committee)
Establishment of the state bank of India
The rural credit survey committee recommended the conversion of the imperial Bank of India into the state Bank of India on July 1 1955. its 92% shares were acquired by the RBI and thus it had the distinction of becoming the first state owned commercial bank in the country.
Regional rural banks
The working group on rural banks, Chairman M Narasimham recommended the setting up of these banks as part of a multi agency approach to rural credit. These banks known as regional rural banks have been set up under an act of 1976.
Lead Bank Scheme
The Gargi study group and the Nariman committee.
The governor of the reserve bank of India had appointed a committee of bankers under the chairmanship of FKF Nariman in August 1969 to prepare a program for creating adequate banking facilities, particularly in districts or regions where such facilities were lacking at the time of nationalisation. The committee favoured a coordinated approach and was of the view that the bank should be allotted particular districts where they would take the lead in surveying the scope for banking development, particularly expansion of credit facilities. Under the lead bank scheme, districts were allotted to the state bank group, 14 nationalised banks and three private Indian banks .
Attempt to correct regional imbalances in banking
The Gadgil committee. It had pointed out in its report that the banking facilities were far greater in relatively developed states and even within these states, they were concentrated in economically advanced pockets.
The rejection by commercial banks of agricultural agriculture is claim for credit (March 1968)
Categorical position taken by the Gorwala committee, which said in its survey report – all India rural credit survey report, “we feel justified in rejecting commercial banks generally as an agency suitable for inclusion with the integrated scheme of rural credit”
