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UPSC 1995: The Narasimham Committee for Financial Sector Reforms has suggested reduction in
(a)SLR and CRR
(b)SLR, CRR and Priority Sector Financing
(c)SLR and financing to capital goods sector
(d)CRR, Priority Sector Financing and financing to capital goods sector
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Not attemptedCorrect Answer: (b) SLR, CRR and Priority Sector Financing
The Narasimham Committee on Financial Sector Reforms (1991) recommended lowering the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) to free banks’ lendable resources and also a phased reduction in Priority Sector Lending targets to improve credit efficiency; hence option (b) lists all three reductions together. ([licchavilyceum.com](https://licchavilyceum.com/upsc-civil-services-prelims-1995-solved-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 1995 Indian Economy question?▼
The correct answer is option (b): SLR, CRR and Priority Sector Financing. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Banking & Financial Sector question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1995, GS Paper 1, as Question 64. It falls under Indian Economy > Banking & Financial Sector.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Banking & Financial Sector?▼
UPSC has asked 48 questions from Banking & Financial Sector (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.