Which committee was appointed to give a detailed report on the Non Performing Assets of public sector banks?

The correct answer is option 1, i.e. Pannir Selvam Committee.

• Pannir Selvam Committee Report submitted in 1998 on NPAs of public sector banks suggests Arbitration/Conciliation under the Arbitration Act 1996 as an effective tool.
• Some of the observations made in that report in this connection are extracted below.
• The Pannir Selvam Committee has pointed out that the main reason for the growth of NPAs and slump in recoveries in banks in India is the antiquated legal system and the laws prevalent in the country. 
• Thus according to the committee unless the legal system in the country is thoroughly overhauled/ reformed it would be increasingly difficult to tackle the NPA problem.
• In contrast, banks abroad have been able to contain their NPAs because of quick disposal of litigation by their judicial systems to release their dues.
• The committee suggests various measures to strengthen credit monitoring by setting up special recovery cells placing persons with credit management skills in branches having sizeable NPAs, and intensive follow up of substandard assets for the up-gradation.
• It further suggests periodic meetings with borrowers, the constitution of special recovery teams, exploring possibilities to quickly get the account adjusted by compromise/write off. Provisions have been made for doubtful and loss assets, obtaining additional security to strengthen loan assets and reduce the provision requirements.
• The committee strongly recommends making the Arbitration act 1996 to be made applicable to banks. Compulsory Arbitration by senior Retd Judges or Ex- ED/CMD of Banks / FIs is advocated before a reference to high court /DRT.

Malegam committee

• The Board of Directors of RBI constituted a Sub-Committee to study the issues and concerns on the microfinance sector.
• This SubCommittee of the Board was formed on October 15, 2010, under the chairmanship of Mr Y.H. Malegam

Mandal commitee

• The Mandal Commission was established in India on 1 January 1979 by the Janata Party government under Prime Minister Morarji Desai
• Its mandate was to "identify the socially or educationally backward classes" of India.
• It was headed by the late B.P. Mandal