The Centre has constituted a high-level committee to review India’s banking sector and recommend reforms aimed at preparing the financial system for the country’s development goals under Viksit Bharat 2047. The panel, chaired by former Central Vigilance Commissioner Suresh N Patel, will examine the existing banking framework and suggest changes to make Indian banks more globally competitive, financially inclusive and resilient.
The Finance Ministry announced the formation of the High-Level Committee on Banking for Viksit Bharat on October 30. The committee has been given six months to complete its work and submit recommendations to the government. Its creation follows an announcement made by Finance Minister Nirmala Sitharaman in the Union Budget 2026-27.
The panel brings together officials and experienced professionals from the banking and regulatory sectors. Its members include Reserve Bank of India (RBI) Deputy Governor Shirish Chandra Murmu, former Indian Bank Managing Director and Chief Executive Officer Padmaja Chunduru, and former RBI Deputy Governor N S Vishwanathan. The Joint Secretary (Banking) in the Department of Financial Services will serve as the Member Secretary.
The committee’s mandate covers a wide range of issues, reflecting the growing role of banks in financing India’s economic expansion. It will assess existing banking practices and prudential norms, identify global best practices and examine which of these can be suitably adopted in the Indian banking system.
One of its important responsibilities will be to prepare a roadmap for building globally competitive Indian banks. The government has repeatedly highlighted the need for domestic lenders to grow in size, strength and international reach. The broader ambition is to develop banks capable of competing with major global financial institutions as India’s economy expands.
The review will also examine the regulatory and legal frameworks governing different categories of banks, including Regional Rural Banks (RRBs) and cooperative banks. These institutions play an important role in providing financial services to rural communities, farmers, small businesses and customers who may not have easy access to larger commercial banks.
The panel will be expected to identify changes that can improve operational efficiency and make banking easier for both customers and businesses. This could involve examining existing regulations, institutional structures and procedures that affect the delivery of financial services.
Another major area of focus will be the long-term capital requirements of India’s financial system. The committee will assess the funding needs of banks, Development Financial Institutions (DFIs) and Non-Banking Financial Companies (NBFCs). It will also recommend possible funding sources and mechanisms to ensure that these institutions can support rising demand for credit.
India’s infrastructure expansion, manufacturing growth, business investment and other development priorities will require substantial financing over the coming years. Banks and other financial institutions will have to mobilise sufficient capital while maintaining financial stability and managing lending risks. The committee’s recommendations could help shape how the sector prepares for these requirements.
The panel will also examine differences in the cost of capital for businesses and suggest policy measures to encourage private investment. Access to affordable finance is important for companies planning expansion, setting up new facilities or investing in technology. The government wants the financial system to support sustainable economic growth by ensuring that businesses can access funding at reasonable costs.
Technology will form another important part of the committee’s work. The panel has been asked to prepare a roadmap for adopting artificial intelligence (AI) and digital innovations across banking institutions. AI-based tools are increasingly being used for fraud detection, customer services, credit assessment and risk management.
However, greater dependence on digital systems also creates challenges, including cyberattacks, data theft and technology-related disruptions. The committee will therefore have to recommend safeguards against cyber risks while encouraging banks to adopt new technologies responsibly.
The panel will also examine how banks can attract skilled professionals and strengthen employee capabilities. As banking becomes more technology-driven, institutions will need employees with expertise in artificial intelligence, cybersecurity, data analysis and digital operations. The committee will suggest measures for talent acquisition and capacity building to develop a future-ready banking workforce.
Financial inclusion will remain another key priority. The committee will review the Priority Sector Lending (PSL) framework and the Lead Bank Scheme to assess whether they continue to meet the needs of India’s changing economy.
Priority Sector Lending requires banks to direct a specified share of their lending towards sectors such as agriculture, micro and small enterprises, and other identified areas. The Lead Bank Scheme, meanwhile, aims to improve coordination among banks and other institutions to expand banking services and credit availability across districts.
The panel will examine whether these arrangements are effective in delivering credit to underserved communities and supporting balanced development. It will also consider ways to make lending more inclusive and data-driven, keeping in view changing economic priorities.
The committee may also examine other banking-related issues referred to it by the government. Its recommendations are expected to provide a broad policy framework for strengthening India’s financial institutions over the coming decades.
The formation of the panel marks the beginning of a comprehensive review rather than an immediate change in banking rules. Any proposed reforms will require consideration by the government and relevant regulators before implementation.
With a six-month deadline, the committee will have to balance several priorities, including stronger banks, easier access to credit, technology adoption and financial stability. Its eventual recommendations could influence how India’s banking sector supports investment, businesses and households as the country works towards the Viksit Bharat 2047 vision.
