Monday 29 August 2016

Banking Reforms: Narasimham Committee

Narasimham Committee
Why ???
Reforms were essential to help catalyse the various dependant auxiliary financial sectors of which banking was the backbone. The Narasimham Committee Report (1991) recommended several measures to deal with  issues like :
1. The banking sector was in disarray ( a state of disorganization or untidiness.)
2. high reserve requirements
3. unreasonable interest rates
4. directed credit
5. lack of competition
6. political interference
7.corruption.

The Narasimham Committee-1  was established under former RBI Governor M. Narasimham in August 1991 to look into all aspects of the financial system in India.
The report of this committee had comprehensive recommendations for financial sector reforms including the banking sector and capital markets.
In broad acceptance to this committee, the government announced slew of reforms.
The key recommendations with respect to the banking sector were as follows:
  1. Reduction in the Statutory Liquidity Ratio ( SLR) and Cash Reserve Ratio (CRR):  It recommended that SLR should be reduced to 25% over the period of time and CRR should be reduced to 10% over the period of time.
[Actions on recommendations: The SLR , which was around 38.5% in 1991-1992 was brought down to some 28% in five years. The CRR was also brought down from 14% to 10% by 1997.]

2.Redefining the priority sector:
The Narasimham Committee redefined the priority sector to include the marginal farmers, tiny sector, small business and transport sector, village and cottage industries etc. The committee also recommended that there should be a target of 10% of the aggregate credit fixed for the Priority Sector at least.

3.Deregulation Of the Interest Rates:  so that banks can themselves set the interest rates for their customers.
It did an splendid work in Asset Classification, defining the Non Performing Assets (or bad debts) and recommendations towards transparency in the banking system.
4. It also recommended setting up tribunals for recovery of Loans, tackling doubtful debts.
5. Restructuring the banks and allowing entry of the new private Banks.

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The Narasimham-II Committee
  1. It focussed on issues like size of banks and capital adequacy ratio among other things. M. Narasimham, Chairman, submitted the report of the Committee on Banking Sector Reforms (Committee-II) to the Finance Minister Yashwant Sinha in April 1998.
  2. Public sector banks were sought to be given more autonomy to initiate a sense of parity( equivalence )  with the efficiency of the international counterparts.
  3. Recruitment procedures, training and remuneration policies of public sector banks were recommended to be brought in line with the best-market-practices of professional bank management.
  4. Government stake holding was another concern which was reduced to 33% for the same purpose. This extended to the membership on the board as well. However these recommendations haven’t been entirely successful.
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Important days / dates – National and International - India and World


Important days / dates in January:

January 01: Global family day.
January 09: NRI Day.
January 10: World laughter day.
January 12: National Youth Day.
January 15: Army Day.
January 23: Netaji Subhash Chandra bose birthday
January 26: India's Republic Day
January 26: International Customs day.
January 28: Lala lajpat rai birthday
January 28: Data protection day
January 30: Martyrs' Day
January 30: World leprosy eradication day



Important days / dates in February:

 

February 04: World Cancer day
February 5 - Kashmir Day
February 06: International day against female genital mutilation
February 12: Darwin day
February 12: World day of the sick.
February 13: Sarojini Naydu's birthday
February 14: Valentine’s Day
February 20: World day of social justice
February 21: International mother language day
February 22: World scout day
February 23: World peace and understanding day
February 24: Central Excise Day.
February 28: National Science Day.



Important days / dates in March:

March 4: World day of fight against sexual exploitation,
March 4: National Security day.
March 8: International Women's Day
March 13: World kidney day March 13 - World Rotaract Day
March 15: World Disabled Day
March 15: World consumer right day.
March 20: World day of theatre for children and young people.
March 20: International day for Francophonie
March 20: World Sleep day
March 21: World Forestry Day.
March 21: International Day for the Elimination of Racial Discrimination.
March 22: World water day
March 23: World Meteorological Day.
March 24: World T.B. day
March 24: International day for achievers
March 25: International day of remembrance-victims of slavery and transatlantic slave trade
March 27: World Drama day



Important days / dates in April:

 

April 2: World autism day
April 5: National Maritime Day.
April 7: World Health Day.
April 17: World haemophilia day
April 18: World Heritage Day.
April 22: Earth Day.
April 23: World book and copyright day
April 25: World Malaria day
April 29: International Dance day



Important days / dates in May

May 1: International Labour Day (Workers Day)
May 3: Press Freedom Day.
May 4: Coal miner’s day
May (2nd Sunday): Mother's Day
May 8: World Red Cross Day.
May 9: Victory day
May 11: National Technology Day.
May 12: International Nurses day
May 14: World Migratory day
May 15: International Day of the Family.
May 17: World Telecommunication Day (Information society day)
May 21: Anti-terrorism day
May 24: Commonwealth Day.
May 31: Anti-Tobacco Day.

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Important days / dates in June:

June 4: International Day of Innocent Children Victims of Aggression.
June 5: World Environment Day.
June 7: International level crossing awareness day
June 8: World ocean day
June 12: World day against child labour
June (2nd Sunday): Father’s Day.
June 14: World blood donor day
June 17: World day to combat desertification and drought
June 20: World Refugee day.
June 21: Father's day, World Music day.
June 23: United Nation’s public service day
June 23: International Widow’s day
June 26: International day against Drug abuse & Illicit Trafficking.
June 27: World Diabetes Day.



Important days / dates in July:

July 1: National Doctor’s day.

July 6: World Zoonosis Day.
July 11: World Population Day
.
July 12: World Malala day

July 18: Nelson Mendela International dayS
July 28: World Nature conservation day


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Important days / dates in August:

August 2: International Friendship Day.
August 3: Independence Day of Niger
August 5: Independence Day of Upper Volta
August 6: Hiroshima Day
August 9: International day of World’s indigenous people
August 9: Quit India Day and Nagasaki Day.
August 12: International Youth day
August 15: Independence Day of India
August 23: International day for the remembrance of the slave trade and its abolition
August 29: National Sports Day.



Important days / dates in September:

2nd September
World Coconut Day
Neera-the future of coconut sector in India
(Theme for 2014)

 

September 5: Teachers' Day (Dr. Radhakrishnan’s birthday)

September 5: Forgiveness day

September 8: World Literacy Day.:    2014: Literacy and Sustainable Development

September 14: Hindi day,

September 14: World first aid day

September 15 Engineer’s day in India :   (In the honour of Sir M.Visvesvaraya (1861-1962), who was a notable Indian engineer


September 16: World Ozone Day.: 2014-Ozone Layer Protection: The Mission Goes On


September 21: Alzheimer’s Day,2014: Dementia: Can we reduce the risk?

September 21 International day of peace: (U N)
September 25: Social justice day   or World Day of Social Justice
September 26: Day of the Deaf.
September 27: World Tourism Day. : 2014 Tourism and Community Development.



Important days / dates in October:

October 1: International day of the older person
October 2: Mahatma Gandhi birthday
October 2: International day of non-violence
October 3: World nature day/ World Habitat Day

October 4: World Animal Welfare Day.
October 5: World Teacher’s day.

October 8: Indian Air Force Day.

October 9: World Post Office day.

October 10: National Post Day. 

October 11: International girl child day

October 12: World Arthritis day.

October 13: UN International Day for National disaster reduction.

October 14: World Standards Day.
October 15 - World Students Day   [November 17: International Student day]

October 15: World White Cane Day (guiding the Blind)

October 16: World Food Day.
October 17: International day for the eradication of poverty.
October 20: World statistics day
October 24: UN Day, World development information Day.
The World Thrift Day is being celebrated on 31st October of every year throughout the globe. In India it is observed on the 30th of October in each District of the states with the involvement of the District Collectors, local MPs, and MLAs etc.

 

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Important days / dates in November:

November 1: World vegan day [vegetarian day]
November 5: World Radiography day.

November 9: World services day
November 14: Children's Day in India, Jawaharlal Nehru birthday
November 16: International day for Endurance
November 17: International Student day, [October 15 - World Students Day]

November 17: National Journalism day

November 18: World Adult day.

November 19: World Citizen Day.
November 20: Africa Industrialization Day,
November 20: Universal children day.

November 21: World Television day,
November 21: World Fisheries day.

November 25: World Non-veg day.
November 26: Law day
November 29: International Day of Solidarity with Palestinian People.
November 30: Flag Day.



Important days / dates in December:

 

December 1: World Aids Day.
December 2: World Computer literacy day
December 2: International day of abolition of slavery
December 3: World conservation day
December 3: International day of People with disabilities

December 4: Navy Day.
December 5: International volunteer day for economic and social development.
December 7: Armed Forces Flag Day
December 7: International civil aviation day.
December 9: The International day against corruption.
December 10: Human Right Day.
December 11: International Mountain day.
December 14: International Energy day.
December 18: International Migrants day.
December 19: Goa’s liberation day.
December 20: International Human solidarity.
December 23: Kisan Divas Farmer's Day).

December 29: International Bio-diversity day
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