Centre constitutes Suresh N Patel-led banking reform panel for Viksit Bharat

Former Central Vigilance Commissioner Suresh N Patel, who has been appointed chairman of the Centre's High-Level Committee on Banking for Viksit Bharat. (ET Now Digital/X-@IndianOilcl)

The Centre has constituted a high-level committee on banking for Viksit Bharat, with former Central Vigilance Commissioner Suresh N Patel appointed as its chairman, to review India's banking sector and recommend structural, institutional, regulatory and legislative reforms aimed at making it globally competitive, financially inclusive and resilient in line with the vision of Viksit Bharat 2047.

The setting up of the committee was announced by Union Finance Minister Nirmala Sitharaman during her Budget 2026-27 speech. According to the Ministry of Finance, the committee will comprise RBI Deputy Governor Shirish Chandra Murmu, former Indian Bank MD and CEO Padmaja Chunduru, and former RBI Deputy Governor N.S. Vishwanathan as members. The Joint Secretary (Banking), Department of Financial Services, will serve as the committee's member secretary. The panel has been given a tenure of six months.

The committee has been tasked with reviewing India's banking sector and recommending reforms to align it with the goals of Viksit Bharat 2047. As part of its mandate, the panel will "assess the present banking practices and prudential norms, identifying global best practices, and adapt them suitably for the Indian banking system, while also providing a roadmap for creating globally competitive banks."

It will also "review the existing regulatory and legal frameworks for banks, including Regional Rural Banks and Cooperative Banks, and suggest reforms to bring in efficiency and enable ease of doing banking for Viksit Bharat." The committee will undertake an assessment of the long-term capital requirements of banks, Development Financial Institutions and Non-Banking Financial Companies (NBFCs), and recommend funding sources and enabling mechanisms to support future credit growth.

Additionally, it will "examine differences in cost of capital for business, and suggest policy options to boost private investment for sustainable growth." On technology and workforce preparedness, the panel has been asked to "prepare a roadmap for AI and digital innovation in banking institutions, while providing for safeguards against cyber risks." It will also recommend strategies for talent acquisition and capacity building to ensure a future-ready workforce for the banking sector.

The committee will further "review the Priority Sector Lending framework and Lead Bank Scheme to assess their relevance, effectiveness, and coordination in promoting inclusive, balanced, and data-driven credit delivery aligned with evolving economic priorities and financial inclusion goals."

The government has also authorised the panel to make recommendations on any other matter referred to it by the Centre.