Archive · 2 Feb 2026
India to Form High-Level Banking Committee for Reforms
India's government is creating a special committee to make the banking system better.
They want to make sure banks are strong and can help more people get loans.
The banks are doing well now, but the government thinks they can do even better.
They also want to make sure the money system is safe and fair for everyone.
Some people think the committee might suggest changes to how banks work or who owns them.
The government is also working on ways to help more people get loans and make the banking system stronger for the future.
India to form a high-level committee to review and reform the banking sector.
The committee aims to align the banking sector with India's growth and ensure financial stability.
Current banking sector status includes strong balance sheets, high profitability, and improved asset quality.
There is a significant credit inclusion gap, with 300–350 million people not included in credit.
The government is examining proposals to raise the FDI cap in public sector banks to 49%.
- Who
- Union Finance Minister Nirmala Sitharaman, Economic Affairs Secretary Anuradha Thakur, Department of Financial Services Secretary M Nagaraju
- What
- Formation of a high-level committee to review and reform the banking sector
- When
- Announced in the Union Budget for FY2027
- Where
- India
- Why
- To align the banking sector with India's next phase of growth, ensure financial stability, inclusion, and consumer protection
- Committee Name
- High Level Committee on Banking for Viksit Bharat
- Purpose
- Review and align banking sector with India's growth
- Current Banking Sector Status
- Strong balance sheets, high profitability, improved asset quality, 98% village coverage
- Credit Inclusion Gap
- 300–350 million people not included in credit
- Bank Credit to Non-Financial Sector
- 56%
- Expected Credit Growth
- Beyond 15%
- FDI Cap Proposal in PSBs
- 49%
- Expected Capital Raising by PSBs in FY27
- ₹40,000–45,000 crore
