The Centre has constituted a high-level committee to review India’s banking sector and recommend a fresh set of reforms aimed at preparing financial institutions for the country’s development goals under Viksit Bharat 2047. The panel will examine banking regulations, capital requirements, digital innovation and financial inclusion, with a focus on making Indian banks more competitive globally.
The committee will be chaired by former Central Vigilance Commissioner Suresh N. Patel and has been given six months to complete its work. The Finance Ministry announced its formation on October 30, following the proposal made by Finance Minister Nirmala Sitharaman in her Union Budget 2026-27 speech.
The panel includes Reserve Bank of India Deputy Governor Shirish Chandra Murmu, former Indian Bank Managing Director and Chief Executive Officer 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 the Member Secretary.
The committee’s central responsibility will be to assess whether India’s existing banking structure can meet the financial needs of a growing economy. It will recommend structural, institutional, regulatory and legislative changes to make the banking system more resilient, inclusive and efficient.
One of its key tasks will be to examine existing banking practices and prudential norms, which are the rules banks follow to manage risks and maintain financial stability. The panel will study international best practices and identify those that can be adapted to Indian conditions. It will also prepare a roadmap for developing globally competitive Indian banks.
The government has repeatedly highlighted the need for Indian financial institutions to build greater scale and compete with leading international banks. The committee’s review could therefore influence the future direction of the banking sector, including how institutions expand their operations, strengthen their balance sheets and improve their ability to finance large businesses and infrastructure projects.
The panel will also review the regulatory and legal framework governing banks, including Regional Rural Banks and cooperative banks. These institutions play an important role in providing credit and banking services in smaller towns and rural areas. The committee will examine whether existing rules need to be changed to improve efficiency and make banking services easier to access.
Capital availability will form another important part of the review. The committee will assess the long-term funding requirements of banks, Development Financial Institutions and Non-Banking Financial Companies. It will recommend possible funding sources and mechanisms to support credit growth as demand for loans rises across businesses and households.
The panel will also examine differences in the cost of capital for businesses. Access to affordable finance is important for companies planning expansion, investing in new technology or setting up manufacturing facilities. The committee has been asked to suggest policy measures that could encourage private investment and support sustainable economic growth.
Technology is another major focus of the committee’s mandate. It will prepare a roadmap for the adoption of artificial intelligence and digital innovation across banking institutions. Banks are increasingly using technology for customer services, fraud detection, risk assessment and lending decisions. However, greater digital adoption also brings risks involving data security, online fraud and cyberattacks.
The committee will therefore recommend safeguards against cyber risks alongside its proposals for technology adoption. It will also examine talent acquisition and capacity building to ensure that banks have employees with the skills required to manage changing technology and financial services.
The review will extend to two important initiatives linked to financial inclusion: the Priority Sector Lending framework and the Lead Bank Scheme. Priority Sector Lending requires banks to direct a specified share of their lending towards identified sectors such as agriculture, small businesses and other areas that need greater access to formal credit.
The Lead Bank Scheme, meanwhile, aims to improve coordination among banks and government agencies to expand banking services and credit availability across districts. The committee will assess whether these mechanisms remain relevant and effective, and how they can support more balanced, inclusive and data-driven lending.
The formation of the panel comes as India looks to strengthen its financial system to support its ambition of becoming a developed economy by 2047. A stronger banking sector will be important for funding infrastructure, manufacturing, small businesses and other areas expected to contribute to long-term growth.
The committee’s recommendations could shape the next phase of banking reforms, although the actual impact will depend on the measures adopted by the government and regulators. With six months to complete its review, the panel is expected to provide a broad assessment of the sector’s requirements and suggest a roadmap for building a more competitive, technologically prepared and financially inclusive banking system.