India Launches Committee to Transform Banking for Viksit Bharat 2047
The Government of India has established a High Level Committee on Banking aimed at reviewing the country’s banking sector. This initiative is part of a broader vision to shape a globally competitive, financially inclusive, and resilient banking system by 2047, coinciding with the goal of achieving Viksit Bharat. The announcement was initially made by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, during her Budget speech for 2026-27.
Heading the Committee is Shri Suresh N. Patel, a former Central Vigilance Commissioner, who will lead a team of esteemed experts. The committee includes Shri Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India, Smt. Padmaja Chunduru, former Managing Director and CEO of Indian Bank, and Shri N S Vishwanathan, another former Deputy Governor of the Reserve Bank of India. The Joint Secretary of the Department of Financial Services will serve as the Member Secretary. The Committee is tasked with completing its work within a six-month timeframe.
Committee’s Objectives and Focus Areas
The Committee has a clear set of objectives that it aims to achieve. These include:
- Evaluating current banking practices and encouraging the adoption of global best practices tailored for India’s banking environment with an aim of creating competitive banks.
- Reviewing existing regulations and legal frameworks applicable to banks, including Regional Rural Banks and Cooperative Banks, to enhance their operational efficiency and ease of banking for citizens.
- Assessing the long-term capital needs for banks and other financial institutions, providing insights on funding sources and mechanisms to stimulate credit growth.
- Investigating the disparities in capital costs for businesses, with a focus on proposing policy measures to encourage private sector investment for sustainable economic development.
- Developing a roadmap for integrating artificial intelligence and digital innovations in banking, while also establishing safeguards against cyber threats. This includes strategies for recruiting talent and enhancing the skills necessary for a forward-looking banking workforce.
- Examining the framework for Priority Sector Lending and the Lead Bank Scheme to evaluate their effectiveness and relevance in meeting the evolving financial inclusion goals.
- Providing recommendations on any further matters as referred by the Government of India.
This comprehensive review could significantly reshape the banking landscape and contribute to the economic ambitions of Viksit Bharat by 2047, thereby ensuring that India’s banking system aligns with global standards while promoting inclusivity and resilience.
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