The Centre will soon announce a high-level committee to prepare a roadmap for “Banking for Viksit Bharat”. Finance Minister Nirmala Sitharaman said the panel will review India’s banking sector and suggest reforms to support the country’s development goals up to 2047.
The committee was proposed in the Union Budget presented on 1 February. Its main objective will be to align banks with India’s next phase of economic growth while protecting financial stability, inclusion and consumer interests.
Speaking at the two-day Public Sector Bank (PSB) Confluence in New Delhi on 17 August, Sitharaman said the panel would soon be constituted. She added that discussions at the event could provide useful inputs for the committee’s work.
The minister said India’s banking sector is currently in a strong position, with non-performing assets (NPAs) at their lowest-ever level. This, she noted, gives banks a favourable base to undertake further reforms and support the vision of a developed India by 2047.
The conference focused on seven important themes: deposit mobilisation, banking services for young people, support for the investment cycle, financing global capability centres, agriculture and horticulture infrastructure, credit card growth and priority-sector lending.
Financial Services Secretary Sanjay Lohia said public sector banks must remain competitive as technology changes business models and customer expectations. Banks will need stronger digital services, new products and deeper expertise in emerging industries.
Around 125 participants attended the conference, including leaders of public sector banks and institutions such as NABARD, EXIM Bank, SIDBI, NHB, IIFCL, IFCI and NaBFID.
FAQs [Frequently Asked Questions]
1. Why is the committee being formed?
The committee will comprehensively review India’s banking sector and recommend reforms to support economic growth, financial stability, inclusion and consumer protection through 2047.
2. What did the Finance Minister say?
Nirmala Sitharaman said the high-level panel would be announced soon and use discussions from the PSB Confluence to develop practical banking recommendations.
3. Which areas will the panel examine?
Key areas include deposits, youth banking, investment financing, global capability centres, agriculture infrastructure, credit cards and priority-sector lending reforms.