NCERT · Class 11 · Economics · Liberalisation, Privatisation and GlobalisationWhat was the main aim of financial sector reforms introduced in 1991?
Step-by-Step Solution
The main aim of financial sector reforms was to reduce the role of the Reserve Bank of India (RBI) from regulator to facilitator of the financial sector.
Detailed Options Breakdown
Option : To increase RBI's absolute control
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Liberalisation, Privatisation and Globalisation.
Option 1: To reduce RBI's role from regulator to facilitator (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: To ban private banks
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Liberalisation, Privatisation and Globalisation.
Option 3: To nationalise all foreign banks
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Liberalisation, Privatisation and Globalisation.
💡 Study Guide: This question tests core syllabus concepts from Liberalisation, Privatisation and Globalisation. For formulas, key summaries, and mock exam reference guides, read the full Liberalisation, Privatisation and Globalisation Revision Notes.