Economics · Economy

The Committee on Banking Sector Reforms, chaired by M. Narasimham, submitted its report in April 1998. Which of the following statements was NOT a recommendation made by this committee to strengthen the banking system? (a) Setting up new and higher norms for capital adequacy. (b) Continuous and open-ended recapitalisation of weak banks from the government budget. (c) Average level of net NPAs for all banks should be reduced to below 5% by 2000 and to below 3% by 2002. (d) Interest subsidy element in credit for the priority sector should be totally eliminated.