New Delhi: The Union government has constituted a five-member high-level committee to review India’s banking system and recommend reforms aimed at making the sector globally competitive, financially inclusive and resilient as the country moves towards Viksit Bharat 2047.
The committee 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 Chief Executive Officer 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 committee’s Member Secretary.
The panel has been given a tenure of six months to examine the existing banking framework and recommend measures to strengthen the sector. Finance Minister Nirmala Sitharaman had announced the formation of the committee in her Union Budget speech for 2026–27.
Review of Banking Regulations and Global Best Practices
The committee will assess existing banking practices and norms, identify successful international models and examine how these can be adapted to the Indian banking system. It will also prepare a roadmap for developing globally competitive Indian banks capable of supporting the country’s long-term economic ambitions.
A key area of its review will be the regulatory and legal frameworks governing banks, including Regional Rural Banks and Cooperative Banks. The panel will recommend changes to improve operational efficiency and make banking services easier to access and use.
Capital Requirements and Credit Growth
The committee will examine the long-term capital requirements of banks, Development Financial Institutions (DFIs) and Non-Banking Financial Companies (NBFCs). It will recommend suitable funding sources and enabling mechanisms to support credit growth and strengthen the financial system.
The panel will also assess differences in the cost of capital for businesses and explore policy measures to encourage private investment and promote sustainable economic growth.
Priority Sector Lending and Financial Inclusion
Another important focus will be the existing priority sector lending framework and the lead bank scheme. The committee will evaluate their relevance, effectiveness and coordination in ensuring inclusive and balanced credit delivery.
It will also examine how these mechanisms can be made more data-driven and aligned with changing economic priorities and the country’s financial inclusion objectives.
AI, Digital Innovation and Cybersecurity
With artificial intelligence and digital technologies increasingly shaping banking operations, the committee will develop a roadmap for AI adoption and digital innovation across banking institutions. The recommendations are expected to address the need for safeguards against cyber risks alongside the benefits of technological advancement.
The panel will also propose strategies for talent acquisition and capacity building to prepare the banking workforce for emerging technological and operational demands.
The committee’s recommendations are expected to provide a framework for banking reforms covering regulation, capital availability, credit delivery, technology and workforce development. Its work will form part of the broader effort to build a stronger, more efficient and future-ready banking sector in line with India’s Viksit Bharat 2047 vision.
