The genesis of financial sector reforms in India could be attributed to the recommendations of the Committee on the Financial System- chaired by Shri M Narasimham in 1991 (popularly known as Narasimham Committee-1).
Based on the recommendations of the committee, the dual regulation of banks was proposed to be removed, interest rates were largely deregulated, Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) were reduced to increase the productive capacity of bank capital, and more importantly, the banking sector started to get re-organised with entry of private sector and foreign banks.