Q. Who among the following was headed a high-level committee on Financial System (CFS) to examine all aspects relating to structure, organization, function and procedures of the financial system?
Explanation: The three decades after nationalisation had seen a phenomenal expansion in the geographical coverage and financial spread of the banking system in the country.
- As certain weaknesses were found to have developed in the system during the late eighties, it was felt that these had to be addressed to enable the financial system to play its role ushering in a more efficient and competitive economy.
- Accordingly, a high-level committee on Financial System (CFS) was set up on 14 August, 1991.
- To examine all aspects relating to structure, organization, function and procedures of the financial system—based on its recommendations, a comprehensive reform of the banking system was introduced in the fiscal 1992–93.
- CFS was headed by Narsimham.
Source: Ramesh Singh