The Union government has formally constituted a High Level Committee on Banking for Viksit Bharat to review India’s banking sector and recommend reforms aimed at making financial institutions more competitive, resilient and inclusive.
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 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.
According to the Ministry of Finance, the committee will have a tenure of six months. Its formation follows Finance Minister Nirmala Sitharaman’s announcement in the Union Budget 2026-27 on February 1.
Committee To Review Banking Rules And Global Standards
One of the committee’s central responsibilities will be to assess existing banking practices and prudential norms, which are safeguards banks must follow to manage financial risks and protect their stability.
It will examine international banking practices and identify measures that can be adapted to India’s financial system. The panel will also prepare a roadmap for building globally competitive Indian banks.
The review will cover existing regulatory and legal frameworks governing commercial banks, Regional Rural Banks and cooperative banks. It will recommend changes intended to improve operational efficiency and make banking easier for institutions, businesses and customers.
Capital Requirements And Funding For Credit Growth
The committee will assess the long-term capital requirements of banks and other financial institutions, including Development Financial Institutions and Non-Banking Financial Companies.
It will examine potential funding sources and mechanisms that could help these institutions support credit growth. The panel will also study differences in the cost of capital for businesses and recommend policy options to encourage private investment.
The review could influence how India’s financial system prepares to fund infrastructure, businesses and other investment needs as the economy expands.
AI And Digital Banking To Be Reviewed Alongside Cyber Risks
The committee has also been tasked with preparing a roadmap for artificial intelligence and digital innovation across banking institutions.
The mandate specifically requires the panel to consider safeguards against cyber risks. This is significant as banks increasingly depend on digital platforms, automated systems and interconnected technology services to deliver financial products.
The committee will also recommend strategies for talent acquisition and capacity building to ensure that the banking workforce has the skills required to manage technological changes.
However, the announcement does not introduce new cybersecurity rules or impose immediate AI-related compliance requirements on banks. It asks the committee to develop recommendations for the sector.
Priority Sector Lending And Lead Bank Scheme Under Review
The panel will examine the Priority Sector Lending framework and the Lead Bank Scheme to assess whether they remain effective in supporting financial inclusion and balanced credit delivery.
Priority Sector Lending requires banks to direct a prescribed portion of their lending towards identified sectors and groups, including agriculture and weaker sections of society.
The Lead Bank Scheme is intended to improve coordination between banks and local authorities to expand access to credit in different regions.
The committee will assess their relevance and effectiveness, with particular attention to data-driven lending and changing economic priorities.
What This Means For Bank Customers And Businesses
The committee’s recommendations could shape how banks operate, raise capital, adopt new technology and extend loans in the coming years.
For customers, possible longer-term effects include changes in banking services, digital infrastructure, access to credit and the safeguards used to protect financial transactions.
Businesses and smaller borrowers could also be affected by recommendations on lending frameworks, funding availability and the cost of capital.
However, these are potential outcomes rather than immediate changes. The committee must first complete its review and submit recommendations, after which the government will decide whether and how to act on them.
The exercise is intended to prepare India’s banking system for the country’s longer-term development goals under the Viksit Bharat 2047 vision.
