Module: General Practice
Q51: Which of the following recommendations was NOT made by the "Tandon Committee" (1974) regarding the lending norms for working capital?
✅ Correct Answer: D
The mandatory "Loan System" (splitting Cash Credit into a Loan Component and a Cash Credit Component) was NOT a Tandon Committee recommendation.
This concept was introduced much later to enforce credit discipline.
The Tandon Committee focused on the MPBF methods (I, II, and III), prescribed strict inventory norms to prevent hoarding, and shifted the philosophy from security-based lending to production-based lending.
This concept was introduced much later to enforce credit discipline.
The Tandon Committee focused on the MPBF methods (I, II, and III), prescribed strict inventory norms to prevent hoarding, and shifted the philosophy from security-based lending to production-based lending.