The Centre on Friday constituted a High Level Committee on Banking for Viksit Bharat to review India's banking sector and recommend the reforms needed to make it globally competitive, financially inclusive and resilient for Viksit Bharat, 2047, the Finance Ministry said in a statement.
Source: IANS — Finance Ministry statement
The committee will be chaired by former Central Vigilance Commissioner Suresh N. Patel. Its members are Reserve Bank of India Deputy Governor Shirish Chandra Murmu, former Indian Bank Managing Director and CEO Padmaja Chunduru, and former RBI Deputy Governor N. S. Vishwanathan. The Joint Secretary (Banking) in the Department of Financial Services will serve as Member Secretary, and the committee's tenure is six months.
Source: The Hindu BusinessLine
Finance Minister Nirmala Sitharaman had announced the plan to set up the high-level committee in her Union Budget speech for 2026-27, saying it would comprehensively review the sector and align it with the country's growth goals while safeguarding financial stability, inclusion and consumer protection.
What the panel has been asked to do
Under its seven terms of reference, the committee will assess present banking practices and prudential norms, identify global best practices and adapt them for India, and provide a roadmap for creating globally competitive banks, The Hindu BusinessLine reported. It will also assess the long-term capital requirements of banks, development financial institutions and non-banking financial companies, and recommend funding sources to support future credit growth, according to Informist.
The panel will further examine whether the priority sector lending framework and the lead bank scheme remain relevant and effective, and prepare a roadmap for artificial intelligence and technology innovation in banks, Informist reported. Informist also noted that the terms of reference do not mention a roadmap for mergers, acquisitions or privatisation of public sector banks.
The committee has six months to complete its review and submit its recommendations. Its report is expected to shape the next round of banking regulation and legislation, though the government has not yet announced any specific reform that will follow from it.