Major Committees 2016: Nachiket Mor Committee and P.J. Nayak Committee and Bibek Debroy Committee (Download PDF)

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Nachiket Mor Committee Purpose: To permit NBFC is to work as Business correspondence Key Recommendation Providing a universal bank account to all Indians above the age of 18 years by January 1, 2016. To achieve this, a vertically differentiated banking system with payments banks for deposits and payments and wholesale banks for credit outreach.

  • These banks need to have Rs.50 crore by way of capital, which is a tenth of what is applicable for new banks that are be licensed.
  • Aadhaar will be the prime driver towards rapid expansion in the number of bank accounts.
  • Monitoring at the district level such as deposits and advances as a percentage of gross domestic product (GDP).
  • Adjusted 50 per cent priority sector lending target with adjustments for sectors and regions based on difficulty in lending.

P.J. Nayak Committee

Purpose: Governance of Boards of Bank in India

Recommendations of the Nayak Committee

  • The committee has submitted its report on 12 May 2014 and made the following main recommendations.
  • Scrapping and removal of Bank Nationalization Acts, SBI Act and SBI (Subsidiary Banks) Act.
  • Conversion of PSBs into Companies as per the Companies Act.
  • Formation of a Bank Investment Company/BIC under the Companies Act; transfer of shares by the central government in PSBs to the BIC.
  • Government will only control earning returned on investment.
  • Fair return on investment to the Central government would be the responsibility of BIC.
  • Appointments of CEOs, Inside Directors and top Executives of PSBs would be the responsibility of the Bank Boards Bureau constituting three serving or retired bank chairman’s and the government would not be involved in this decision in any way.
  • Nayak committee also recommends proportionate voting rights to all shareholders and reduction of governmental shareholding to 40%.

Bibek Debroy Committee

Purpose: For Restructuring the railway

The Bibek Debroy Committee is a high level committee for “Mobilization of Resources for Major Railway Projects and Restructuring of Railway Ministry and Railway Board” created by NDA Government after coming into power in 2014. This is yet another Biblical size report in 319 pages and reviews almost all areas of Indian Railways operations. The key recommendations of this committee are as follows:

  • Introduction of credible third-party certification in most areas of regulation to cut down on multiple permissions needed by investors.
  • Establishment of Independent Regulator RRAI
  • Transition to commercial accounting
  • Streamline recruitment & HR processes
  • Focus on core areas
  • Decentralization
  • Indian Railway Manufacturing Company
  • Encouraging private entry
  • Joint Venture with State governments
  • Changing relationship between government & Railways
  • Raising resources

- Published/Last Modified on: November 28, 2016

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