DMPQ: Banking sector was highly regulated and the sad state of affairs of the bank prior to 1991 was mainly because of government mismanagement. In this context discuss the recommendation of Narsimahan Committee.( Economics)

A high level committee on financial system was set up on august 14,1991. The objective of the committee was set up to examine all aspect relating to structure, organisation, function and procedures of the financial system.  The recommendations were majorly aimed at ensuring a degree of operational flexibility; internal autonomy for public sector banks; and ensuring greater degree of professionalism in banking operation.