Daily Static Quiz Prelims Practice 2027
The Urjit Patel Committee (2014) recommended CPI-based inflation targeting at 4% ± 2% and a Monetary Policy Committee, and flexible inflation targeting was adopted in 2016. The Tarapore Committees (1997, 2006) dealt with capital account convertibility, the Bimal Jalan Committee (2019) dealt with the RBI's economic capital framework, and the N.K. Singh Committee (2016–17) reviewed the FRBM framework.
- The Narasimham Committee I (1991) recommended a reduction in the Statutory Liquidity Ratio and the Cash Reserve Ratio.
- The NBFC-MFI category was introduced by the RBI on the recommendation of the Nachiket Mor Committee.
Statement 1 is correct — Narasimham I recommended lower SLR and CRR, greater competition and prudential norms, and it led to the DRT Act, 1993; Narasimham II (1998) focused on NPAs and capital adequacy, influencing the SARFAESI Act, 2002. Statement 2 is incorrect — the NBFC-MFI category (2011) followed the Malegam Committee (2010–11) on microfinance, whereas the Nachiket Mor Committee recommended payments banks, licensed in 2015.
Option (a) is incorrectly matched — the Raja J. Chelliah Committee (1991–93) dealt with tax reforms (lower rates, a broader base and rationalised customs), while capital account convertibility was examined by the Tarapore Committees. Options (b), (c) and (d) are correct — Malhotra recommended private participation and an independent regulator, leading to the IRDA Act, 1999; Nayak (2014) led to the Bank Boards Bureau (2016), replaced by the FSIB in 2022; and S.H. Khan supported integrating banking and development-finance functions.
- Assertion (A): The Rangarajan Committee estimated a higher poverty ratio for 2011–12 than the Tendulkar Committee.
- Reason (R): The Rangarajan Committee revised the food and non-food consumption norms used to derive the poverty line.
Assertion A is correct — Rangarajan (2014) estimated poverty at 29.5% for 2011–12, against 21.9% under Tendulkar (2009). Reason R is correct and explains A, because Rangarajan revised the food and non-food consumption norms, producing a higher poverty line, so more people fell below it. Its recommendations were not formally adopted by the government.
- The Y.K. Alagh Task Force based the poverty line on calorie norms of 2,400 kcal for rural areas and 2,100 kcal for urban areas.
- The Bimal Jalan Committee dealt with the economic capital framework of the RBI.
- The N.K. Singh Committee recommended the debt-to-GDP ratio as the medium-term anchor for fiscal policy.
Statement 1 is correct — Alagh (1979) set the first official, calorie-linked poverty line, and Lakdawala (1993) then introduced State-specific lines. Statement 2 is correct — Jalan (2019) framed rules for risk provisioning and surplus transfer, and the RBI transferred ₹1.76 lakh crore to the government in 2019. Statement 3 is correct — N.K. Singh recommended a debt-to-GDP anchor, a fiscal deficit glide path and an escape clause; the FRBM Act was amended in 2018, but the proposed Fiscal Council was not set up.
