What is the malhotra committee?

The Malhotra Committee, formally known as the "Committee on the Financial System," was established in 1991 by the Government of India to assess and recommend reforms in the Indian banking and financial system. Chaired by R.N. Malhotra, the committee aimed to enhance the efficiency and effectiveness of the banking sector, promote competition, and improve the regulatory framework. Its recommendations led to significant changes, including the introduction of new banking licenses, the establishment of private banks, and the emphasis on prudential norms and risk management. The committee's work laid the foundation for the modernization of India's financial system.