NEW DELHI, October 31 (Aalimi Nation) – The Centre has set up a High-Level Committee on Banking for Viksit Bharat, tasking it with reviewing the country's banking sector and recommending reforms aimed at building banks fit for a developed economy by 2047, the Finance Ministry said.
The panel was announced by Finance Minister Nirmala Sitharaman in her Union Budget 2026-27 speech. According to the ministry, it will propose structural, institutional, regulatory and legislative changes to make Indian banking globally competitive, financially inclusive and resilient.
Suresh N. Patel, a former Central Vigilance Commissioner, has been named chairperson. The members are Shirish Chandra Murmu, a Deputy Governor of the Reserve Bank of India; Padmaja Chunduru, former Managing Director and Chief Executive Officer of Indian Bank; and N. S. Vishwanathan, a former Deputy Governor of the Reserve Bank. The Joint Secretary (Banking) in the Department of Financial Services will serve as Member Secretary.
The committee has a tenure of six months. The government may also refer additional matters to it during that period.
The terms of reference are broad. The committee will assess existing banking practices and prudential norms, study international best practices and judge how far they suit India, and prepare a roadmap for developing globally competitive banks in step with the growing economy and a changing global financial environment.
It will also review the laws and regulations governing banks, including Regional Rural Banks and Cooperative Banks, and recommend changes to improve operational efficiency and the ease of banking for customers.
On funding, the panel is to look at the long-term capital needs of banks, Development Financial Institutions and Non-Banking Financial Companies. It will examine sources of funds and mechanisms that could support credit growth, as well as differences in the cost of capital faced by businesses.
Technology forms another strand of the mandate. The committee is expected to draw up a roadmap for adopting artificial intelligence and digital innovation in banks, and to suggest safeguards against cyber risks. It has also been asked to propose a strategy for talent acquisition and capacity building so that the banking workforce is ready for the future.
The ministry said the committee will review the relevance and effectiveness of the Priority Sector Lending framework and the Lead Bank Scheme, look at coordination among banks, and suggest ways to make credit delivery more data-driven. Financial inclusion, meeting the needs of different sections of society, is described as a central part of the mandate.
The review comes as India's economy is expected to need far larger volumes of long-term finance to meet the Viksit Bharat 2047 goal of a developed nation by the centenary of Independence. The question before the panel, in effect, is whether the present banking architecture, spread across public sector banks, private banks, rural banks, cooperatives and non-bank lenders, can supply that finance while keeping depositors and the financial system safe.
The committee has not yet released any findings, and no date has been announced for public consultation. Its report is due after the six-month tenure, after which the government will decide which recommendations to take forward, including any that would require changes to existing law.
