The government is likely to announce a 10-member high-level committee on banking for Viksit Bharat, or India's vision of creating a developed country by 2047, by the end of October. According to reports from The Economic Times, the committee's composition is being finalised and will include public and private sector representation. The committee was announced as part of the 2026-27 budget to comprehensively review the banking sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection.
Some of the names being considered for the committee include former RBI deputy governor Michael Patra, former financial services secretary M Nagaraju and former State Bank of India chairman Dinesh Khara. As reported by The Economic Times, the committee will have representation from the Indian Banks' Association (IBA) and sectoral experts, including fintech companies and the Economic Advisory Council to the Prime Minister (EAC-PM). The committee will hold interactions with all stakeholders, including the insurance industry, with member names to be finalised at the highest level.
The committee's key agenda, including terms of reference, is being finalised with a focus on building an ecosystem for large banks, deepening credit penetration and preparing the system for unilateral sanctions, artificial intelligence challenges and climate risks. According to The Economic Times, the committee will also address unsecured retail concentration, rapid growth segments, productive lending to micro, small and medium enterprises, infrastructure and green investment. Additionally, banks must strengthen board governance, talent, customer grievance redressal and cyber defence.
Finance Minister Nirmala Sitharaman had stated in August that the banking sector is in its strongest position to undertake reforms and that the high-level committee on banking for Viksit Bharat will be announced soon. As reported by The Economic Times, she emphasised that once the committee forms its views and recommendations, the government will be ready to rev up the Indian economy. A paper by the EAC-PM last month suggested that India should consolidate banks to create few big banks of equal size without compromising market competition.
