Government Forms High-Level Committee to Review Banking Sector for Developed India
The Indian government has established a committee to enhance the banking sectors competitiveness and inclusivity by 2047.
New Delhi, October 30 (Daily Kiran) : The Indian government has announced the formation of a high-level committee aimed at reviewing the banking sector. This initiative, revealed by the Finance Ministry on October 30, seeks to make India’s banking system globally competitive and financially inclusive by 2047. The committee will recommend essential structural, institutional, regulatory, and legislative reforms.
Former Central Vigilance Commissioner Suresh N. Patel will chair the committee. Other members include Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India (RBI), former Indian Bank CEO Padmaja Chunduru, and former RBI Deputy Governor N.S. Vishwanathan. The Joint Secretary of Banking in the Department of Financial Services will serve as the member secretary.
Finance Minister Nirmala Sitharaman announced this committee during her presentation of the 2026-27 Union Budget, emphasizing the government’s commitment to developing a robust banking framework.
The committee will evaluate current banking practices and prudential norms, identify global best practices, and adapt them to the Indian context. It aims to create a roadmap for establishing banks that can compete on a global scale.
Additionally, the committee will review existing regulatory and legal frameworks for various banks, including regional rural and cooperative banks, and suggest reforms to enhance efficiency and accessibility in banking.
It will also assess the long-term capital requirements of banks, development financial institutions, and non-banking financial companies. Recommendations will be made regarding financing sources and mechanisms to support loan growth.
The committee plans to analyze the cost of capital for businesses and propose policy options to encourage private investment for sustainable development.
Furthermore, it will develop a roadmap for AI and digital innovation in banking and provide measures to mitigate cyber risks. A strategy for talent acquisition and capacity building will be suggested to ensure a future-ready workforce in the banking sector.
Lastly, the committee will review the priority sector lending framework and lead bank scheme, evaluating their relevance and effectiveness in promoting inclusive, balanced, and data-driven loan distribution aligned with evolving economic priorities and financial inclusion goals.
The committee is also expected to make recommendations on any other matters referred to it by the government.
