The Narasimham Committee for Financial Sector Reforms has suggested reduction in

The Narasimham Committee on Financial Sector Reforms 1991 aimed to improve the efficiency and profitability of the Indian banking system. The committee recommended a reduction in the Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR) because high levels of these ratios locked up bank funds with the government and the RBI, leaving less capital for commercial lending. Additionally, the committee suggested redefining and scaling down Priority Sector Financing. It recommended that the mandatory target for priority sector lending be reduced and directed only toward small farmers and the weakest sections of society, rather than a broad range of sectors. This was intended to allow banks to deploy more credit based on commercial viability and market efficiency. Therefore, option B is correct as it covers the reduction in SLR, CRR, and the scope of Priority Sector Financing.