HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Govt constitutes high level committee on Banking for Viksit Bharat
Nov-02-2026

The finance ministry has said that the government has constituted a High Level Committee on Banking for Viksit Bharat to undertake a review of India’s banking sector and recommend structural, institutional, regulatory and legislative reforms necessary to make it globally competitive, financially inclusive, and resilient for Viksit Bharat, 2047. Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman during her Budget speech 2026-27 had announced setting up of the Committee. 

The 'High Level Committee on Banking for Viksit Bharat' will be chaired by former Central Vigilance Commissioner Suresh N Patel. RBI Deputy Governor Shirish Chandra Murmu, former deputy governor N S Vishwanathan, and former Indian Bank MD Padmaja Chunduru will be part of the panel, which was initially announced in the Union Budget 2026-27. The committee will have a tenure of six months.

The panel will assess the present banking practices and prudential norms, identifying global best practices, and adapt them suitably for the Indian banking system, while also providing a roadmap for creating globally competitive banks. Besides, it will review the existing regulatory and legal frameworks for banks, including Regional Rural Banks and Cooperative Banks, and suggest reforms to bring in efficiency and enable ease of doing banking for Viksit Bharat. Other Terms of Reference (ToR) of the panel include assessment of the long-term capital requirements for banks, including Development Financial Institutions and Non-Banking Financial Companies, with recommendations on funding sources and enabling mechanisms to support credit growth. It will also examine differences in the cost of capital for businesses and suggest policy options to boost private investment for sustainable growth.

Further, the committee will prepare a roadmap for AI and digital innovation in banking institutions, while providing for safeguards against cyber risks. Among other ToRs is to suggest a strategy for talent acquisition and capacity building to ensure a future-ready workforce for the banking sector. The Patel-chaired committee will review the priority sector lending framework and lead bank scheme to assess their relevance, effectiveness, and coordination in promoting inclusive, balanced, and data-driven credit delivery aligned with evolving economic priorities and financial inclusion goals.

  RELATED NEWS >>