The Centre has constituted a six-month high-level committee to review India's banking sector and recommend reforms.
Headed by former Central Vigilance Commissioner Suresh N. Patel, the panel includes three banking and financial sector experts.
The committee will examine regulations, capital requirements, AI adoption, cybersecurity and financial inclusion as part of its mandate.
The Centre has constituted a high-level committee to review India's banking sector and recommend reforms across regulatory, institutional and legal frameworks, with a mandate to align the sector with the government's Viksit Bharat 2047 goals.
The ‘High Level Committee on Banking for Viksit Bharat’ will be chaired by Suresh N. Patel, former Central Vigilance Commissioner. Its members include Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India (RBI); Padmaja Chunduru, former Managing Director and CEO of Indian Bank; and N S Vishwanathan, former RBI Deputy Governor. The Joint Secretary (Banking) in the Department of Financial Services will serve as the Member Secretary.
The committee will have a tenure of six months, according to a Finance Ministry statement issued on Friday. Its formation was announced by Union Finance Minister Nirmala Sitharaman in her Budget speech for 2026-27.
Banking Practices, Regulations Under Review
The committee will assess existing banking practices and prudential norms, identify global best practices and examine how they can be adapted to the Indian banking system. It will also recommend a roadmap for developing globally competitive banks.
Its terms of reference include a review of the regulatory and legal frameworks governing banks, including Regional Rural Banks and cooperative banks. The panel will suggest changes aimed at improving efficiency and making banking easier.
It will also assess the long-term capital requirements of banks, Development Financial Institutions and Non-Banking Financial Companies (NBFCs), and recommend funding sources and mechanisms to support credit growth.
The committee will examine differences in the cost of capital for businesses and suggest policy options to encourage private investment and sustainable growth.
AI, Cybersecurity And Financial Inclusion
The panel will prepare a roadmap for artificial intelligence and digital innovation in banking institutions, while recommending safeguards against cyber risks. It will also suggest measures for talent acquisition and capacity building to prepare the banking workforce for future requirements.
Another key area of review will be the Priority Sector Lending framework and the Lead Bank Scheme. The committee will assess their relevance, effectiveness and coordination in promoting inclusive and balanced credit delivery.
The review will also consider how these frameworks can be aligned with changing economic priorities and financial inclusion goals. The government may refer additional matters to the committee for recommendations.
