Nirmala Sitharaman Says Banking Reforms Committee Likely This Month

The government is expected to announce the members of a high-level committee on banking reforms soon, Finance Minister Nirmala Sitharaman said on Monday. A senior Finance Ministry official indicated that the panel could be constituted later this month. The committee will examine how India’s banking sector can better support the country’s long-term economic ambitions and its goal of becoming a developed nation by 2047. The proposed panel was first announced in the Union Budget 2026-27.

Speaking at the two-day PSB Confluence 2026 in New Delhi, Sitharaman said the government would move quickly once the committee submits its recommendations. The proposed High-Level Committee on Banking for Viksit Bharat is expected to review the existing banking framework and identify changes required to support India's economic expansion. The government has not yet formally constituted the committee or announced its members.

The panel will focus on the evolving role of banks in achieving the objectives of Viksit Bharat. India's economic ambitions will require financial institutions to support businesses, infrastructure projects and wider access to credit. The committee is therefore expected to assess how the banking sector can adapt to the changing requirements of the economy over the coming decades while remaining resilient and efficient.

Also Read: Nirmala Sitharaman Advises Interns To Avoid Mistakes With Serious Consequences

Sitharaman also highlighted the improved financial position of Indian banks. She said non-performing assets, or NPAs, are at their lowest levels, indicating that banks have strengthened their balance sheets and are in a better position to support further economic activity. The reduction in bad loans has been an important development for the banking sector and provides a stronger foundation for future reforms.

The proposed reforms come as India seeks to expand the scale and reach of its financial system. Banks are expected to play a major role in mobilising savings, extending credit and financing investments needed for sustained economic growth. A review of the sector could therefore cover structural and operational changes required to ensure that banks remain capable of meeting the country's long-term development needs.

Once the committee is formally constituted, it will study the banking sector and submit recommendations to the government. Sitharaman has indicated that the government intends to act promptly on those recommendations. The formation of the panel is consequently expected to begin a broader review of India's banking system and its role in supporting the country's Viksit Bharat vision through 2047.

Also Read: Govt Considers MDR Framework For UPI as Consumers Remain Exempt From Fees