1. 4.Financial Sector Reforms A)Banking Sector Reforms B)Capital Market Reforms C)Insurance Sector Reforms A)Banking Sector Reforms- Narasimham Committee 1. Lowering of SLR Statutory Liquidity Ratio -23% 2. Lowering of CRR Cash Reserve Ratio – 4%

2. 3. Deregulation of Interest Rates-
Healthy Competition,Operational Efficiency
4. Introduction of Prudential Norms –
Related to recognition of income, classification of assets
5. Introduction of Capital Adequacy Norms –
Capital to Risk Weighted Assets -9% from
2004- helps banks to absorb a reasonable
level of losses.
6.Entry of New Private Sector Banks –
7. Freedom of Operations –
New Branches, Extension Counters.

3. 8. Special Recovery Tribunals-
Quick recovery of loan
9. Board for Financial Regulation and
Supervision(BFRS) –
Regulates and Supervises the activities of
banks, financial institutions and non –bank
finance companies.
B) Capital Market Reforms –
SEBI as Statutory Body-
SEBI – 1988

4. Statutory Body – 1992
2. Primary Market Reforms –
All information about market.
3. Investments by FIIs –
Primary and Secondary Markets.
4. Establishment of NSE –
NSE – 1992, Transparency and Operational
efficiency in Secondary Market.
5. Strengthening the Government Securities
Market –
Auction System, Setting up of the Securities
Trading Corporation of India.

5. C) Insurance Sector Reforms-
Monopoly of the Govt.-
Insurance Regulatory and
Development Authority Act(IRDA)-
1999