On 30 October 2026, the Centre constituted the High-Level Committee on Banking for “Viksit Bharat” to review India’s banking sector and recommend structural, institutional, regulatory and legislative reforms. The committee will submit a reform roadmap within six months. Its formation follows an announcement by Union Finance Minister Nirmala Sitharaman in her Union Budget 2026–27 speech.
Composition and remit
Former Central Vigilance Commissioner Suresh N. Patel chairs the committee. Its three expert members are Reserve Bank of India Deputy Governor Shirish Chandra Murmu, former Indian Bank MD and CEO Padmaja Chunduru, and former RBI Deputy Governor N. S. Vishwanathan. The Joint Secretary (Banking), Department of Financial Services, is the member secretary.
The committee will assess banking practices and prudential norms, identify global best practices, and recommend changes to frameworks covering commercial, regional rural and cooperative banks. It will assess long-term capital needs of banks, Development Financial Institutions and Non-Banking Financial Companies, and propose funding mechanisms to support credit growth.
Its remit also includes a roadmap for artificial intelligence and digital innovation, with safeguards against cyber risks; review of the Priority Sector Lending framework and Lead Bank Scheme; and strategies for talent acquisition and capacity building. The stated objective is to make Indian banks globally competitive, financially inclusive and resilient by 2047.
Important Facts for Exams
- Prudential safeguards: Prudential regulation seeks to keep banks viable and resilient, using measures such as capital and liquidity requirements and controls on risk.
- Priority-sector lending: The Reserve Bank of India assigns banks to direct a specified portion of lending towards areas including agriculture, small enterprises and low-income groups.
- District credit coordination: India’s Lead Bank Scheme coordinates banks and credit institutions district-wise to help ensure that rural areas’ credit needs are met.
- Three regulatory pillars: The Basel framework separates bank regulation, supervisory discretion and market discipline supported by disclosure requirements into three pillars.
