Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions XWADY4N79J
Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Assertion: Financial sector reforms in India aimed to reduce the role of the Reserve Bank of India (RBI) in regulating the financial institutions.

Reasoning: The role of RBI as a regulator was seen as a hindrance to the efficient functioning of the financial sector.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is not true but Reasoning (R) is correct.

Assertion (A) is true but Reasoning (R) is not correct.

Correct Answer:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Explanation:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Financial sector reforms in India indeed aimed to reduce the role of the Reserve Bank of India (RBI) in regulating the financial institutions. The objective was to shift from a regulatory role to a facilitator role, allowing greater autonomy and decision-making by the financial sector. The role of RBI as a regulator was seen as a hindrance to the efficient functioning of the financial sector. By reducing its regulatory control, the reforms aimed to enhance the efficiency, competitiveness, and innovation within the financial sector.

CUET Questions