With reference to different Committees in India, consider the following details :
| Sl. No. | Committee | Objective | Organization under which it was formed |
|---|---|---|---|
| 1. | R.N. Malhotra Committee | Comprehensive reforms of Insurance sector in India | Insurance Regulatory and Development Authority of India |
| 2. | L.C. Gupta Committee | Preparing a roadmap for the introduction of derivatives trading in India | Securities and Exchange Board of India |
| 3. | Urjit R. Patel Committee | Preparing a roadmap for reforming bank lending to the Housing sector | Reserve Bank of India |
| 4. | Y.H. Malegam Committee | Preparing a roadmap for reforms in Microfinance sector in India | Reserve Bank of India |
In which of the above rows are all the details correctly matched ?
Detailed Explanation:
Row 1 — Incorrect. R.N. Malhotra Committee (1993) was formed by Government of India, NOT IRDAI. In fact, IRDAI itself was created (1999) because of this committee's recommendations — so IRDAI couldn't have formed it before it existed!
Row 2 — Correct. L.C. Gupta Committee (1996), formed by SEBI, for roadmap on derivatives trading.
Row 3 — Incorrect. Urjit Patel Committee (2013), formed by RBI — but its real objective was Monetary Policy Framework reform (flexible inflation targeting, creation of MPC), NOT housing sector lending.
Row 4 — Correct. Y.H. Malegam Committee (2010), formed by RBI, for Microfinance sector reforms — made after the Andhra Pradesh microfinance crisis.
Memory Trick: "IRDAI was BORN FROM Malhotra, not the other way" — and "Urjit Patel = Monetary Policy, not Housing."
Important Committees
| Committee | Year | Formed By | Real Purpose |
|---|---|---|---|
| R.N. Malhotra | 1993 | Govt of India | Insurance sector reforms → led to IRDAI's creation |
| L.C. Gupta | 1996 | SEBI | Roadmap for derivatives trading |
| Urjit Patel | 2013 | RBI | Monetary Policy Framework reform; recommended MPC |
| Y.H. Malegam | 2010 | RBI | Microfinance sector regulation (post AP crisis) |
| Narasimham Committee I | 1991 | Govt of India | Banking sector reforms |
| Narasimham Committee II | 1998 | Govt of India | Banking sector reforms (phase 2) |
| Bimal Jalan Committee | — | RBI | Economic capital framework of RBI |
| Nachiket Mor Committee | 2013 | RBI | Comprehensive financial services for small businesses/low-income households |
Common Trap Pattern in UPSC:
- Mixing up who formed the committee (Govt vs Regulator)
- Mixing up the actual objective with a similar-sounding one (e.g., Housing vs Monetary Policy)
Question 1 of 15 Banking Structure in India
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Consider the following statements about the Non-Banking Financial Companies (NBFCs) i...