The Centre has established a high-level banking committee led by Suresh N. Patel to recommend reforms, strengthen financial institutions and prepare India's banking sector for 2047.
The Government of India has established a High-Level Committee on Banking for Viksit Bharat to examine the country's banking system and suggest comprehensive reforms. The initiative aims to make Indian banks more competitive globally, strengthen financial inclusion and improve the resilience of financial institutions as the country works towards its Viksit Bharat 2047 vision.
The committee will examine structural, institutional, regulatory and legislative aspects of the banking sector and recommend measures to improve its overall efficiency and long-term sustainability.
The formation of the panel follows the announcement made by Union Finance and Corporate Affairs Minister Nirmala Sitharaman in her Union Budget speech for 2026-27.
Former Central Vigilance Commissioner Suresh N. Patel has been appointed Chairman of the high-level committee.
Other members of the panel include prominent representatives and former officials from India's banking and financial regulatory institutions.
The committee's members are:
Suresh N. Patel: Former Central Vigilance Commissioner and Chairman of the committee.
Shirish Chandra Murmu: Deputy Governor, Reserve Bank of India (RBI).
Padmaja Chunduru: Former Managing Director and Chief Executive Officer of Indian Bank.
N. S. Vishwanathan: Former Deputy Governor, Reserve Bank of India.
The Joint Secretary (Banking) in the Department of Financial Services will serve as the Member Secretary.
According to the Ministry of Finance, the committee will have a tenure of six months to complete its review and submit recommendations.
The committee has been assigned a broad mandate covering banking regulations, institutional development, financial requirements, technology adoption and credit delivery.
Its major responsibilities include the following:
The committee will evaluate existing banking practices and prudential regulations in India. It will study successful international banking models and identify practices that can be adapted to the country's financial system.
It will also develop recommendations for building globally competitive Indian banks capable of supporting the country's expanding economic requirements.
Another important responsibility will be examining the existing legal and regulatory structure governing Indian banks.
The review will cover commercial banks, Regional Rural Banks (RRBs) and Cooperative Banks.
The committee will suggest changes to improve operational efficiency, simplify regulatory processes and make banking services easier to access and operate under the Viksit Bharat vision.
The panel will examine the future capital needs of banks, Development Financial Institutions (DFIs) and Non-Banking Financial Companies (NBFCs).
It will identify potential funding sources and recommend mechanisms to ensure that financial institutions have sufficient resources to support increasing credit demand and economic development.
The recommendations are expected to address the long-term financing requirements of India's growing economy.
The committee will also investigate differences in the cost of capital available to businesses.
Based on its findings, it will propose policy measures to improve financing conditions and encourage private-sector investment.
The objective is to create a supportive financial environment that promotes sustainable economic growth and business expansion.
Technology transformation will be another major focus area.
The committee will prepare a roadmap for adopting artificial intelligence (AI) and other digital innovations across banking institutions.
At the same time, it will recommend appropriate safeguards to address cybersecurity threats and risks associated with increasing digitalisation.
The panel will also examine talent acquisition and workforce development strategies to ensure that banking institutions have the skills and expertise required to manage future technological changes.
The committee will assess the effectiveness and relevance of two important financial inclusion mechanisms: the Priority Sector Lending (PSL) framework and the Lead Bank Scheme.
It will examine whether these initiatives are delivering credit effectively and supporting balanced economic development.
The review will focus on improving coordination, strengthening financial inclusion and encouraging data-driven lending practices in line with changing economic requirements.
Apart from its specified responsibilities, the committee may also provide recommendations on other banking-related matters referred to it by the Government of India.
This provision will allow the panel to examine additional challenges and emerging requirements that may affect the country's financial system.
The formation of the High-Level Committee represents an important step towards preparing India's banking infrastructure for the country's long-term economic ambitions.
Its recommendations could influence how banks manage capital, adopt emerging technologies, improve credit delivery and respond to changing regulatory requirements.
The focus on Regional Rural Banks, Cooperative Banks, NBFCs and financial inclusion also highlights the government's intention to strengthen the broader financial ecosystem rather than concentrating exclusively on large commercial banks.
With a six-month mandate, the committee is expected to provide a roadmap for building a more efficient, technologically advanced and financially resilient banking sector.
The recommendations will help the government evaluate potential reforms needed to support India's vision of becoming a developed economy by 2047.
Conclusion
The formation of the High-Level Committee on Banking for Viksit Bharat marks an important step towards transforming India's financial sector ahead of 2047. By reviewing banking regulations, capital requirements, digital innovation, cybersecurity and financial inclusion, the committee aims to develop a roadmap for a stronger and more competitive banking system. Its recommendations could help Indian financial institutions meet future economic demands, expand credit access and support the country's ambition of becoming a developed nation.