Question : REFORMS IN FINANCIAL SECTOR

(a) whether the Government have drawn up a detailed schedule for the implementation of structural reforms in the financial system; and

(b) if so, the details thereof?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS (SHRI ANANDRAO VITHOBA ADSUL):

(a) and (b) The Committee on Banking Sector Reforms (Narasimham Committee-ll) has provided the road map for future reforms in the banking sector. Major agenda for further reform in the financial/banking sector based on the recommendations of the Committee are as follows:

# Deregulation of the financial sector with greater autonomy in operations.

# Consolidation of banking system and convergence to universal banking.

# Restructuring of weak public sector banks. # Dilution of Government equity in public sector RBI banks to 33%.

# Adoption of scientific tools for management of risks.

# Further enhancement of Capital Adequacy.

# Capital for market risk and adoption of scientific tools for management of risks. Tightening of prudential standards.

# Greater disclosures.

# Technology improvements to modernise Indian banking.

Furtherlegal reforms to expedite recovery of banks`dues.