2021 Economy - Banking Sector Reforms

Which one of the following statements best reflects the most logical, rational and practical suggestion implied by the passage given above ?

• Lending by the banks should be closely monitored and regulated by the Central Government.
• Interest rates should be kept low so as to induce banks to lend more, promote credit growth and thereby boost economic activity.
• Merger of many banks into a few large banks alone is the long-term solution to make them viable and prevent their bad performance.
• Indian banking system requires structural reforms as a long-term solution for bad loans problem.