Which of the following was NOT a result of Financial Sector Reforms in India implemented as a part of NEP 1991?

the financial sector was to be allowed to take decisions on all matters without consulting the RBI.

One of the major aims of financial sector reforms of 1991 was to reduce the role of RBI from regulator to facilitator of financial sector. This means that the financial sector was to be allowed to take decisions on many matters without consulting the RBI.

The reform policies led to the establishment of private sector banks, Indian as well as foreign. Foreign investment limit in banks was raised to around 74 per cent. Those banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI and rationalise their existing branch networks. Though banks have been given permission to generate resources from India and abroad, certain managerial aspects have been retained with the RBI to safeguard the interests of the account-holders and the nation. Foreign Institutional Investors (FII), such as merchant bankers, mutual funds and pension funds, are now allowed to invest in Indian financial markets.