The government has constituted a five-member high-level committee on banking to review the Indian banking system and recommend reforms necessary to make it globally competitive, financially inclusive, and resilient for Viksit Bharat 2047.
The committee will be headed by Suresh N Patel, former Central Vigilance Commissioner. Shirish Chandra Murmu, deputy governor, Reserve Bank of India, Padmaja Chunduru, former MD & CEO, of Indian Bank and N S Vishwanathan, former deputy governor of RBI will also be he members of the Committee. The Joint Secretary (Banking), Department of Financial Services will be the Member secretary of the committee. The tenure of the panel will be six months.
Finance minister Nirmala Sitharaman announced the setting up of the committee during her Budget speech 2026-27.
The committee will assess current banking practices and norms, identify global best practices, and adapt them suitably for the Indian banking system, while also providing a roadmap for creating globally competitive banks.
It will also review the existing regulatory and legal frameworks for banks, including Regional Rural Banks and Cooperative Banks, and suggest reforms to improve efficiency and ease of doing banking.
The panel will also assess the long-term capital requirements for banks, including Development Financial Institutions and Non-Banking Financial Companies (NBFCs), with recommendations on funding sources and enabling mechanisms to support credit growth. It will also examine differences in cost of capital for business, and suggest policy options to boost private investment for sustainable growth.
Other key areas that the committee will examine include the priority sector lending framework and lead bank scheme to assess their relevance, effectiveness, and coordination in promoting inclusive, balanced, and data-driven credit delivery aligned with evolving economic priorities and financial inclusion goals.
With the growing use of AI and associated risks, the panel will prepare a roadmap for AI and digital innovation in banking institutions, while providing for safeguards against cyber risks. With the increased use of technology, the panel will also suggest a strategy for talent acquisition and capacity building to ensure a future-ready workforce for the banking sector.
