New Delhi, Oct 30 (IANS) The Centre has constituted a high-level committee on Banking for Viksit Bharat to undertake a review of India’s banking sector and recommend structural, institutional, regulatory and legislative reforms necessary to make it globally competitive, financially inclusive, and resilient for Viksit Bharat, 2047, according to a Finance Ministry statement issued on Friday.
The committee will be chaired by former Central Vigilance Commissioner Suresh N. Patel and will include RBI Deputy Governor Shirish Chandra Murmu, former Indian Bank MD and CEO Padmaja Chunduru, and former RBI Deputy Governor N S Vishwanathan as members. The Joint Secretary, Banking, in the Department of Financial Services will serve as its Member Secretary, the statement said.
Finance Minister Nirmala Sitharaman had announced the government’s plan to set up a high-level committee for Viksit Bharat while presenting the Union Budget for 2026-27.
According to the terms of reference, the committee will assess the present banking practices and prudential 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 review the existing regulatory and legal frameworks for banks, including Regional Rural Banks and Cooperative Banks, and suggest reforms to bring in efficiency and enable ease of doing banking for Viksit Bharat.
The committee will undertake an assessment of the long-term capital requirements for banks, including Development Financial Institutions and Non-Banking Financial Companies, with recommendations on funding sources and enabling mechanisms to support credit growth.
It will examine differences in the cost of capital for businesses and suggest policy options to boost private investment for sustainable growth.
The committee will also prepare a roadmap for AI and digital innovation in banking institutions, while providing for safeguards against cyber risks. Further, to suggest a strategy for talent acquisition and capacity building to ensure a future-ready workforce for the banking sector.
Besides, it will review 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.
The committee will also make recommendations on any other matter referred to it by the government.
–IANS
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