The Bimal Jalan Panel was set up by Reserve Bank of India to

The correct answer is B. In 2014 the RBI constituted a panel under Bimal Jalan to scrutinise applications for new banking licences. The exercise followed the RBI's revised licensing guidelines, and the panel's recommendations shaped which applicants moved forward to in-principle approval, which is how Bandhan and IDFC First got their licences.

Why the others are wrong:

• A: NPA reduction is handled through asset quality reviews, the SARFAESI Act 2002, the Insolvency and Bankruptcy Code 2016 and the Prompt Corrective Action framework, not through this panel.
• C: Financial inclusion guidelines came from committees such as Rangarajan (2008) and the Nachiket Mor Committee (2013).
• D: Mobile banking usage was examined by separate RBI working groups, not this panel.

Core concept: the licensing of new banks under Section 22 of the Banking Regulation Act, 1949, and the RBI's role as regulator. For Mains, this links to the debate on banking sector competition, the role of differentiated banks and inclusion.

Caution: a different Bimal Jalan Committee (2018) reviewed the RBI's economic capital framework and surplus transfer to the government. Do not mix the two.

Trap: aspirants see "Jalan" and pick the financial inclusion or NPA option by association, without remembering which RBI panel the name belongs to.