Explanation:

The Union Budget 2021 has announced the privatisation of two public sector banks and one general insurance company in the upcoming fiscal 2021-22.

• Many committees had proposed bringing down the government stake in public banks below 51%:

Narasimham Committee, 1998

• The merger of major banks which will have a 'multiplier effect' on the industry.
• Improve the strength of the Indian banking system the committee recommended to raise capital adequacy norms.
• Review of functions of boards to adopt a professional corporate strategy to check the imbalance between government control over the banks in the form of management and ownership, and bank autonomy.

PJ Nayak Committee, 2014

• Conversion of PSBs into Companies as per the Companies Act.
• Formation of a Bank Investment Company (BIC) under the Companies Act and transfer of shares by the central government in PSBs to the BIC.
• BIC should be given the controlling power of boards of PSBs.
• Proportionate voting rights to all shareholders and reduction of government shareholding to 40%.

Abhijit Sen Committee (2002) is related to the Long Term Food Policy of India.

• The Abhijit Sen committee (2007) was formed to study the impact, if any, on futures trading on agricultural commodity prices (not banking reforms).

Hence option 1st is correct.