Kerala Tradition & Fascinating Destinations 2014 Kerala Tradition & Destinations 2014 | Page 430

The Spate of Reforms
The recommendations made by a high level committee on financial sector,
chaired by Mr M. Narasimham, laid the foundation for the banking sector
reforms during the post liberalization era. These reforms tried to enhance
the viability and efficiency of the banking sector. The Narasimham
Committee suggested that there should be functional autonomy, flexibility
in operations, dilution of banking strangulations, reduction in reserve
requirements and adequate financial infrastructure in terms of
supervision, audit and technology. The committee further advocated
introduction of prudential forms, transparency in operations and
improvement in productivity, only aimed at liberalizing the regulatory
framework, but also to keep them in time with international standards.
The emphasis shifted to efficient and prudential banking linked to better
customer care and customer services. It was