Discuss the major recommendations of Narasimham Committee which was set up in 1991 to analyze the falling efficiency of the Indian banking sector.  

The Narasimham Committee, constituted in 1991 under the chairmanship of M. Narasimham, was a landmark committee that aimed to analyze and recommend reforms to improve the efficiency, stability, and functioning of the Indian banking sector. The committee's recommendations played a crucial role in shaping the trajectory of banking reforms in India. Here are some of the major recommendations put forth by the Narasimham Committee:

1. Capital Adequacy and Prudential Norms:

   • The committee emphasized the importance of maintaining adequate capital in banks to absorb potential losses and ensure financial stability. It recommended that banks should maintain a minimum capital adequacy ratio (CAR) of 8% of risk-weighted assets.
   • The committee suggested implementing prudential norms to assess and ________ ____ __________ _________ _______ ___ ________ _________ ________ ___.
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