Question

Arrange the following committees in chronological order as per their year of set up from earliest to latest.
(A) The Narasimham Committee set up by RBI for financial system.
(B) The A. M. Khushro Committee for comprehensive review of the structure of agricultural credit in the country.
(C) The M.L Dantwala Committee set up by RBI to review the working of RRBs.
(D) Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development.
Choose the correct answer from the options given below:

• A. (C), (D), (B), (A).
• B. (A), (B), (D), (C).
• C. (C), (A), (B), (D).
• D. (C), (D), (A), (B).

Hint:

- Memorizing the landmarks helps: Dantwala reviewed RRBs shortly after their launch (1977).
- CRAFICARD paved the way for NABARD (1979-1982).
- Narasimham Committee was part of the economic liberalization reforms in 1991.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
To evaluate agricultural credit systems and banking reforms, the Reserve Bank of India (RBI) and the Government of India have periodically constituted various high-level committees.
Studying their chronological sequence helps understand the evolution of rural credit institutions in India.

Step 2: Detailed Explanation:
Let us establish the exact setup year for each committee:
- (C) The M.L Dantwala Committee:
This committee was appointed by the RBI in 1977 to review the working of Regional Rural Banks (RRBs) and assess their suitability in the rural credit structure.
- (D) Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD):
Popularly known as the B. Sivaraman Committee, it was constituted by the RBI in 1979. Its recommendations directly led to the establishment of NABARD in 1982.
- (B) The A. M. Khushro Committee (Agricultural Credit Review Committee - ACRC):
This committee was appointed in 1989 to conduct a comprehensive review of the agricultural credit system and evaluate the financial health of cooperative banks and RRBs.
- (A) The Narasimham Committee:
The Committee on the Financial System, headed by M. Narasimham, was set up by the Government of India/RBI in 1991 to suggest wide-ranging reforms for the banking sector.
Arranging the committees from earliest to latest:
\[ \text{Dantwala (C) [1977]} \rightarrow \text{CRAFICARD (D) [1979]} \rightarrow \text{Khushro (B) [1989]} \rightarrow \text{Narasimham (A) [1991]} \]
This matches the sequence (C), (D), (B), (A).

Step 3: Final Answer:
The correct option is (A).