Previous Year Question
The Bimal Jalan Panel was set up by Reserve Bank of India to
Suggest to minimise the non-performing Asset
Scrutinize application for new bank licences
Frame guidelines for financial inclusion
Study use of mobiles in delivering banking service
Correct Answer: B
Detailed Solution
The Reserve Bank of India constituted a High Level Advisory Committee (HLAC) under the chairmanship of Dr. Bimal Jalan in 2013. Its principal task was to screen and scrutinise applications received for licences to establish new banks in the private sector and make recommendations to the RBI.
According to the Ministry of Finance, the RBI issued the Guidelines for Licensing of New Banks in the Private Sector on 22 February 2013. The Bimal Jalan Committee was subsequently constituted to examine the applications received under these guidelines.
Apart from Bimal Jalan, the Committee included Usha Thorat, C. B. Bhave and Nachiket Mor. Applications were first to be checked by the RBI for prima facie eligibility, after which the HLAC would undertake detailed screening and submit its recommendations.
After the Committee submitted its recommendations, the RBI granted in-principle approval on 2 April 2014 to IDFC Limited and Bandhan Financial Services Private Limited to establish new banks. Both had been recommended as suitable by the HLAC.