Monetary reforms aimed at doing away with interest rate distortions and rationalising the structure of lending rates. The new policy tried in many ways to make the banking system more efficient. Some of the measures undertaken were:
(i) Reserve Requirements: Reduction in Statutory Liquidity Ratio (SLR) and the Cash Reserve Ratio (CRR) were recommended by the Narasimham Committee Report, 1991. It was proposed to cut down the SLR from 38.5 percent to 25 percent within a time span of three years. Similarly, it was proposed that the CRR be brought down to 3 to 5% over a period of four years.
(ii) Interest Rate Liberalisation: Earlier, -RBI controlled
(a) the interest rates payable on deposits,
(b) the interest rates which could be charged for bank loans.
(iii) Greater competition among public sector, private sector and foreign banks and elimination of administrative constraints.
(iv) Liberalisation of bank branch licensing policy in order to rationalize the existing branch network.
(v) Banks were given freedom to relocate branches and open specialized branches
(vi) Guidelines for opening new private sector banks.
(vii) New accounting norms regarding classification of assets and provisions of bad debt were introduced in tune with the Narasimham Committee Report.

(i) Crop Insurance: Agriculture in India is highly prone to risks like droughts and floods. It is necessary to protect the farmers from natural calamities and ensure their credit eligibility for the next season. For this purpose, the Government of India introduced many agricultural schemes throughout the country. The Pradhan Mantri Fasal Bima Yojana (Prime Minister's Crop Insurance Scheme) was launched on 18 February 2016. It envisages a uniform premium of only 2 percent to be paid by farmers for Kharif cmps and 1.5 percent for Rabi crops. The premium for (annual) commercial and horticultural crops will be 5 percent.
(ii) Cold Storage: India is the largest producer of fruits and second largest producer of vegetables in the world. In spite of that per capita availability of fruits and vegetables is quite low because of post harvest losses which account for about 25% to 30% of production. Besides, quality of a sizable quantity of produce also deteriorates by the time it reaches the consumer. Most of the problems relating to the marketing of fruits and vegetables can be traced to their perishability. Perishability is responsible for high marketing costs, market gluts, price fluctuations and other similar problems. In order to overcome this constraint, the Government of India and the Ministry of Agriculture promulgated an order known as, i Cold Storage Order, 1964" under Section 3 of the Essential Commodities Act, 1955. However, the cold storage facility is still very poor and highly inadequate. Post Harvest measures: The annual value of harvest and post-harvest losses of major agricultural produce at national level was of the order of Rs.92,651 crores, calculated using production data of 2012-13 at 2014 and wholesale prices, estimated by the Indian Council of Agricultural Research (ICAR).

Agrarian Crisis after Reforms:
(a) High input Costs: The biggest input for farmers is seeds. Before liberalisation, farmers across the country had access to seeds from state government institutions. The institutions produced own seeds and were responsible for their quality and price. With liberalization, India's seed. market was opened up to global agribusinesses. Also, following the deregulation many state government institutions were closed down in 2003. These hit farmers doubly hard seed prices shot up, and fake seeds made an appearance in a big way.
(b) Cutback in agricultural subsidies: Farmers were encouraged to shift from growing a mixture of traditional crops to export oriented 'cash crops' like chill, cotton and tobacco. Liberalisation policies reduced the subsides on pesticide, fertilizer and elasticity. As a result prices have increased by 300%. However, the prices of agricultural goods have not increased to that extent.
(c) Reduction of import duties: With a view to open India's markets, the liberalization reforms also withdrew tariffs and duties on imports. By 2001, India completely removed restrictions on imports of almost 1,500 items including food. As a result, cheap imports flooded the market, pushing prices of crops like cotton and pepper down.
(d) Paucity of credit facilities: After 1991 the lending pattern of commercial banks, including nationalised bank drastically changed. As a result, loan was not easily adequate. This has forced the farmers to rely on money lenders who charge exorbitant rate of interest.

(i) Liberalization was necessitated because various licensing policies were said to be deterring the growth of the economy.
(ii) Privatization was necessitated because of the belief that the private sector was not given enough opportunities to earn more money.
(iii) Globalization was necessitated because today a developed country can grow without the help of the under developed countries. Natural and human resources of the developing countries are exploited by the developed countries and the developing economies are used as market for the finished goods of the developed countries. The surplus capital of the developed countries are invested in backward economies.

(i) Monetary reforms aimed at doing away with interest rate distortions and rationalizing the structure of lending rates.
(ii) The new policy tried in many ways to make the banking system more efficient.
(a) Reserve Requirements:
(i) In mid-1991, SLR and CRR were very high.
(ii) It was proposed to cut down the SLR from 38.5% to 25% within a time span of three years.
(b) Interest rate Liberalisation :
(i) Earlier, RBI controlled the rates payable on deposits of different maturities.
(ii) The rates which could be charged for bank loans which varied according to the sector, use and size of the loan.
(iii) Earlier, it was longer term deposits after the liberalisation it was progressively extended to deposits of shorter maturity.
(c) Greater Competition:
(i) Among public sector, private sector, and foreign banks and elimination of administrative constraints.
(ii) Banks were given freedom to relocate branches.
(iii) Bank branch licensing policy in order to rationalize the existing branch network.
(iv) Guidelines for opening new private sector bank.
(v) New accounting norms regarding classification of assets and provisions of bad debts were introduced for Narasimhan Committee Report.