Question — Q.98
With reference to different Committees in India, consider the following details. In which of the above rows are all the details correctly matched?
| Sl. No. |
Committee | Objective | Organisation under which it was formed |
|---|---|---|---|
| 1✗ | R.N. Malhotra Committee | Comprehensive reforms of Insurance sector in India | Insurance Regulatory and Development Authority of India ✓ Actual: Ministry of Finance, GoI |
| 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 ✓ Actual: Revise & strengthen Monetary Policy Framework (CPI Inflation Targeting) | Reserve Bank of India |
| 4✓ | Y.H. Malegam Committee | Preparing a roadmap for reforms in Microfinance sector in India | Reserve Bank of India |
A2 only
B2 and 3
C1, 3 and 4
D2 and 4 ✓
Each Row — Detailed Explanation
1
R.N. Malhotra Committee
✗ Wrong — Organisation is incorrect
The objective is correct — Malhotra Committee did study comprehensive reforms of India’s Insurance sector (1993-94). But the organisation is completely wrong. It was formed under the Ministry of Finance, Government of India — chaired by R.N. Malhotra (former RBI Governor). IRDAI did not even exist in 1993 — it was created in 1999-2000 based on the Malhotra Committee’s own recommendation that an independent insurance regulator be established. A committee cannot be formed under a body that didn’t yet exist.
✗ IRDAI was BORN FROM Malhotra Committee’s recommendation — it couldn’t have formed it
Malhotra Committee = 1993, Ministry of Finance · IRDAI established = 1999-2000 · Cause cannot equal Effect · Chaired by R.N. Malhotra (Retd. RBI Governor)
2
L.C. Gupta Committee
✓ Correctly matched — all three details accurate
All three correct. The L.C. Gupta Committee was constituted by SEBI in 1998, chaired by Dr. L.C. Gupta (IIM Ahmedabad), to develop the regulatory and legal framework for derivatives trading in India. Its recommendations led directly to the launch of index futures (Sensex and Nifty futures) in June 2000, creating the foundation for India’s entire derivatives market.
✓ L.C. Gupta (1998) → SEBI → Derivatives roadmap → Index futures launched June 2000
Also set up J.R. Verma sub-committee for operational framework · Recommended investor protection measures · NSE and BSE launched Sensex/Nifty futures based on its framework
3
Urjit R. Patel Committee
✗ Wrong — Objective is incorrect
Organisation is correct (RBI). But the objective is completely wrong. The Urjit R. Patel Committee (2013-14) — formally “Expert Committee to Revise and Strengthen the Monetary Policy Framework” — was mandated to reform India’s monetary policy, specifically recommending: adoption of CPI-based inflation targeting (4% ± 2%), replacing WPI with CPI as nominal anchor, and establishing a Monetary Policy Committee (MPC). It had nothing to do with Housing sector or bank lending to housing.
✗ Urjit Patel = Monetary Policy Framework (CPI, MPC) — NOT Housing sector
Report: January 2014 · CPI inflation target 4% (±2%) · Replaced WPI with CPI · Recommended 5-member MPC · Led to Monetary Policy Framework Agreement 2015 with Govt of India
4
Y.H. Malegam Committee
✓ Correctly matched — all three details accurate
All three correct. The Y.H. Malegam Committee was constituted by RBI in 2010, following the microfinance crisis in Andhra Pradesh (aggressive lending + coercive recovery → borrower suicides). Chaired by Y.H. Malegam (then Central Board member, RBI), report submitted January 2011. Its recommendations created the NBFC-MFI category, interest rate caps (~26%), and borrower protection norms — transforming India’s microfinance regulatory landscape.
✓ Y.H. Malegam (2010-11) → RBI → Microfinance reforms post-Andhra Pradesh crisis
Report: January 2011 · Created NBFC-MFI category · Interest rate cap · Margin cap · Borrower loan limit · Max 2 MFI loans per borrower · Transformed Indian microfinance sector
All Four Committees — Correct Details at a Glance
| Row | Committee | Year | Actual Objective | Formed Under | Verdict |
| 1 | R.N. Malhotra | 1993 | Comprehensive insurance sector reforms | Ministry of Finance, GoI (NOT IRDAI) | ✗ Wrong org |
| 2 | L.C. Gupta | 1998 | Roadmap for derivatives trading in India | SEBI ✓ | ✓ Correct |
| 3 | Urjit R. Patel | 2013 | Revise & strengthen Monetary Policy Framework — CPI inflation targeting, MPC (NOT housing) | RBI ✓ | ✗ Wrong obj |
| 4 | Y.H. Malegam | 2010 | Roadmap for microfinance sector reforms | RBI ✓ | ✓ Correct |
Memory Trick
🧠 Two Traps + Two Correct Rows
Row 1 Trap — Malhotra ≠ IRDAI: IRDAI was born FROM the Malhotra Committee — a child cannot give birth to its own parent. The committee (1993) was under Ministry of Finance. IRDAI (1999-2000) was the result.
Row 3 Trap — Urjit Patel ≠ Housing: Urjit Patel = Monetary Policy + CPI Inflation Targeting + MPC. One of the most landmark RBI committees. Has nothing to do with housing. Don’t confuse with NHB or Deepak Parekh Committee (housing finance).
Row 2 ✓ L.C. Gupta = SEBI = Derivatives: L.C. Gupta → SEBI → Derivatives (1998). Led to Nifty/Sensex futures in 2000. India’s derivatives market started here.
Row 4 ✓ Malegam = RBI = Microfinance: Y.H. Malegam → RBI → Microfinance (2010-11). Andhra Pradesh crisis context. Created NBFC-MFI category, interest rate caps, borrower protection.
