Need for a New Narasimham Committee Report on Banking Reform
· Business · Business Standard
The Narasimham Committee reports of 1991 and 1998 laid the foundational framework for India's banking sector reforms, including the shift toward market-determined interest rates and prudential norms. With the financial landscape significantly altered by digital banking, non-bank financial companies, and evolving risk profiles, experts argue that a fresh review is necessary. The current banking system faces new challenges related to cybersecurity, complex credit products, and the integration of fintech players that were not present during the previous reform cycles. A new committee would need to evaluate the efficacy of existing regulatory structures and the consolidation of public sector banks. The objective would be to align the banking sector with the requirements of a modern, high-growth economy.
Why it matters
A new reform roadmap would directly impact the operational stability of Indian banks, the cost of credit for consumers, and the regulatory environment for the rapidly expanding fintech sector.
Read the original report — Business Standard
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