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Following the recommendations of the Narasimham Committee, the new guidelines formulated by the RBI were aimed to:

  1. A
    govern the entry of new private sector banks to make the banking sector more competitive
  2. B
    reduce the freedom given to banks to rationalize their existing branch network
  3. C
    set up more foreign exchange banks
  4. D
    lend more easily for industrial development

Solution & Step-by-step Explanation

Based on the Narasimham Committee reports on Financial System reforms (1991), the Reserve Bank of India (RBI) issued guidelines in 1993 allowing the entry of new private sector banks. This measure was introduced to introduce greater efficiency and competitiveness into the Indian banking sector.

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Following the recommendations of the Narasimham Committee, the new guidelines formulated by the RBI were aimed to:
A
govern the entry of new private sector banks to make the banking sector more competitive
B
reduce the freedom given to banks to rationalize their existing branch network
C
set up more foreign exchange banks
D
lend more easily for industrial development

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Banking ReformsNarasimham CommitteeRBI

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