In pursuance with the recommendations of Narsimham Committee, the RBI has framed new guidelines

A. to govern entry of new private sector banks to make the banking sector more competitive

B. to reduce the freedom given to banks to rationalize their existing branch network

C. to setup more foreign exchange banks

D. to lend more easily for industrial development

Answer: Option A

Solution(By Examveda Team)

In pursuance with the recommendations of Narsimham Committee, the RBI has framed new guidelines to govern entry of new private sector banks to make the banking sector more competitive.