Understanding the various committees formed for banking sector reforms in India is crucial for grasping the evolution and policies of the banking system. These committees are set up to study specific issues and recommend changes to improve efficiency, stability, and outreach.

The question asks us to match specific banking sector reform committees with their primary purposes. Let's examine the committees and their associated focus areas based on known financial history and the provided matching.

Banking Sector Reform Committees and Their Purposes

Different committees have been formed over time to address specific challenges and areas needing reform within the Indian banking sector. Matching a committee to its purpose requires knowledge of their mandates and recommendations.

Matching Committees to Purposes: Step-by-Step

Let's analyze the given committees and their purposes based on the mapping provided in the correct option:

• (a) Y.V. Reddy Committee: This committee is known for its work on financial sector issues, including interest rates. The purpose (ii), "Rationalization of interest rate on small saving," aligns with the work often undertaken under the guidance of prominent economists and policymakers like Y.V. Reddy.
• (b) Rashid Jilani Committee: This committee was associated with reforms related to credit delivery and lending practices. The purpose (i), "Revised method of lending in place of cash credit system," points to efforts to streamline and improve corporate lending norms, a key area of focus for such committees.
• (c) S.M Kelkar Committee: The S.M. Kelkar committee has been involved in various fiscal and financial matters. In the context of banking reforms, purpose (iv), "Regional Rural Banks," relates to studying the structure, health, and future of these banks, which play a crucial role in rural finance.
• (d) I.T. Vaz Committee: This committee specifically looked into aspects of bank lending. Purpose (iii), "Working capital lending norms," directly relates to the rules and guidelines banks follow when providing funds for companies' day-to-day operations. The Vaz Committee indeed focused on these norms.

Based on this analysis, the correct matching is:

• (a) – (ii)
• (b) – (i)
• (c) – (iv)
• (d) – (iii)

This corresponds to the structure presented in option 2.

Revision Table: Banking Committees

Additional Information: Banking Reforms Context

Banking sector reforms in India began in earnest in the early 1990s, following the recommendations of committees like the Narasimham Committee. These reforms aimed at liberalizing the banking sector, improving its health and efficiency, and aligning it with international standards. Subsequent committees continued to address specific issues such as:

• Prudential Norms: Introducing guidelines for asset classification, income recognition, and provisioning to strengthen bank balance sheets.
• Capital Adequacy: Ensuring banks maintain sufficient capital reserves as per Basel norms.
• Interest Rate Deregulation: Giving banks more freedom in setting interest rates (though some rates, like those on small savings, remained subject to government review).
• Branch Expansion and Licensing: Rationalizing policies for opening new bank branches and licensing new banks.
• Specific Institutions: Examining the functioning and viability of specific types of banks like RRBs.
• Lending Practices: Improving methodologies for assessing credit risk and managing loans, including working capital finance.

Understanding these reforms provides context for the specific purposes of the committees mentioned in the question.