Government sets up High-Level Committee on Banking for Viksit Bharat to suggest banking reforms

What has happened

The Finance Ministry has constituted the High-Level Committee on Banking for Viksit Bharat. The committee will review India’s banking sector and recommend structural, institutional, regulatory and legislative reforms to make it globally competitive, financially inclusive and strong for Viksit Bharat, 2047. Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman had announced the committee in her Budget 2026-27 speech.

Who is on the committee

Shri Suresh N. Patel, former Central Vigilance Commissioner, is the chairperson. The three expert members are Shri Shirish Chandra Murmu (Deputy Governor, Reserve Bank of India), Smt. Padmaja Chunduru (former Managing Director and CEO, Indian Bank) and Shri N. S. Vishwanathan (former Deputy Governor, Reserve Bank of India). The Joint Secretary (Banking), Department of Financial Services, will be the Member Secretary. The committee’s term is six months.

What the committee will examine

Its terms of reference include assessing current banking practices and prudential norms, identifying global best practices and adopting them suitably for the Indian banking system, and providing a roadmap for globally competitive banks.

It will review the existing regulatory and legal framework for banks, including regional rural banks and cooperative banks, and suggest reforms to improve efficiency and ease of doing banking for Viksit Bharat. It will also assess banks’ long-term capital needs, including development finance institutions and non-banking financial companies, and recommend funding sources and enabling mechanisms to support credit growth.

Focus on AI and digital banking

The committee will prepare a roadmap for artificial intelligence (AI) and digital innovation in banking institutions and suggest safeguards against cyber risks. It will also suggest strategies for talent acquisition and capacity building so the banking sector has a future-ready workforce.

Review of priority sector lending and Lead Bank Scheme

The committee will review the priority sector lending framework and the Lead Bank Scheme. The aim is to assess their relevance, effectiveness and coordination in promoting inclusive, balanced and data-driven credit delivery in line with changing economic priorities and financial inclusion goals. It will also make recommendations on any other matter assigned to it by the Government of India.

What it means for ordinary people

For now, there is no direct impact on ordinary account holders. The committee will only give recommendations, and no rule is being applied immediately. More details are in the Finance Ministry release (Release ID: 2330631).