Banking Reforms To Support Viksit Bharat
Key Highlights
- The government will soon establish a high-powered committee on banking for Viksit Bharat.
- Finance Minister Nirmala Sitharaman said the committee will examine reforms for India’s next phase of growth.
- The committee was announced in the Union Budget 2026-27.
- Government sources indicate that the panel could be constituted as early as August.
- Discussions at the two-day PSB Confluence will provide material for the committee’s deliberations.
- Seven major banking themes are being discussed at the conclave.
- The review will focus on growth while protecting financial stability, inclusion and consumers.
New Delhi, August 17: The government is set to establish a high-powered committee to review India’s banking sector and recommend reforms aligned with the country’s Viksit Bharat growth vision, Finance Minister Nirmala Sitharaman said on Monday.
Speaking at the two-day Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) Confluence in New Delhi, Sitharaman said the committee would be announced soon.
Government sources indicated that the panel could be constituted as early as this month.
Banking Panel Announced In Budget
The high-level committee on “Banking for Viksit Bharat” was announced by Sitharaman in the Union Budget for 2026-27.
The proposed panel will comprehensively review the banking sector and examine how it can be better aligned with India’s next stage of economic growth.
At the same time, the committee will be expected to safeguard financial stability, promote financial inclusion and protect consumers.
PSB Conclave To Feed Committee
The ongoing two-day PSB Confluence is expected to provide important inputs for the proposed committee.
Sitharaman said the discussions being held among public sector banks and financial institutions would generate substantive material that the panel could use while preparing its recommendations.
The government wants the committee to benefit from practical discussions and best practices emerging from the banking sector.
Seven Key Banking Themes
The Department of Financial Services is organising the conclave around seven key themes.
These include deposit mobilisation, banking services for young customers, supporting the investment cycle, facilitating global capability centres, strengthening agriculture and horticulture value-chain infrastructure, innovation in credit-card businesses and priority-sector lending.
The Finance Minister said the themes were selected after detailed examination by the Department of Financial Services.
Focus On Global Best Practices
According to Sitharaman, the Department of Financial Services has researched each of the seven areas extensively and incorporated relevant global best practices into the discussions.
The objective is to develop practical ideas that can strengthen the ability of India’s banking system to support businesses, households, agriculture and investment.
The discussions are also expected to help identify areas where public-sector banks can improve their products, operations and customer services.
Banking Sector And India’s Growth
The proposed committee comes at a time when India is seeking to expand investment, manufacturing and infrastructure while strengthening its financial ecosystem.
A stronger banking system will be important for mobilising deposits, providing credit and supporting businesses as India works towards its long-term Viksit Bharat objectives.
The committee’s recommendations could therefore influence the direction of banking-sector policy in the coming years.
What Comes Next
Once constituted, the high-powered panel will examine the issues facing India’s banking sector and consider recommendations for its next phase of development.
The inputs from the PSB Confluence are expected to form an important part of that exercise.
The government’s approach indicates that the upcoming banking review will seek to balance faster economic growth with financial stability, inclusion and consumer protection.
