High-Level Panel to Make India's Banks Globally Competitive
New Delhi, October 30: The Centre has formed a high-level committee to review India's banking sector with the aim of making it globally competitive and financially inclusive by 2047, the year associated with the Viksit Bharat goal. The announcement was made in a Finance Ministry statement issued on Friday.
The committee will recommend structural, institutional, regulatory and legislative reforms needed to strengthen the sector.
Who is on the committee
The committee will be chaired by Suresh N. Patel, a former Central Vigilance Commissioner. Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India, Padmaja Chunduru, former Chief Executive Officer and Managing Director of Indian Bank, and NS Vishwanathan, a former RBI Deputy Governor, are its members. The Joint Secretary for banking in the Financial Services Department will serve as member secretary.
The proposal was first outlined by Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2026-27.
Key areas of focus
The committee will look at current banking practices and prudential norms, study global best practices and suggest how they can be adapted for Indian banks. It will also draw up a roadmap for building banks that can compete internationally.
It will review the regulatory and legal frameworks for banks, including regional rural banks and cooperative banks, and propose measures to improve efficiency and ease of banking.
The panel will assess the long-term capital requirements of banks, including development financial institutions and non-banking financial companies, and recommend funding sources and support mechanisms to sustain credit growth. It will also analyse the cost-of-capital gap faced by businesses and suggest policy options to boost private investment for sustainable growth.
AI, cybersecurity and talent
Technology is another major focus. The committee will prepare a roadmap for artificial intelligence and digital innovation in banking institutions and recommend safeguards against cyber risks. It will also propose a strategy for acquiring talent and building capacity, so that the banking sector has a future-ready workforce.
Inclusive lending
The committee will review the priority sector lending framework and the lead bank scheme. The objective is to assess their relevance, effectiveness and coordination in promoting inclusive, balanced and data-driven credit delivery, in line with evolving economic priorities and financial inclusion goals.
The committee will also make recommendations on any other matter entrusted to it by the government.