The Government of India Constitutes the ‘High Level Committee on Banking for Viksit Bharat’

Key Highlights:

• The Government of India has constituted a High Level Committee on Banking for Viksit Bharat.
• The committee is chaired by Shri Suresh N. Patel, former Central Vigilance Commissioner.
• Its mandate is to review India’s banking sector and recommend structural, institutional, regulatory, and legislative reforms.
• The aim is to make the banking sector globally competitive, financially inclusive, and resilient for Viksit Bharat 2047.
• The committee has a tenure of six months to submit its recommendations.

Detailed Insights:

• The formation of this committee was announced by the Union Minister of Finance during her Budget speech 2026-27.
• It will assess current banking practices, identify global best practices, and propose adaptations for the Indian banking system.
• The committee will review existing regulatory and legal frameworks for all banks, including Regional Rural Banks and Cooperative Banks.
• It is tasked with assessing long-term capital requirements for banks, Development Financial Institutions (DFIs), and Non-Banking Financial Companies (NBFCs).
• Recommendations will also cover a roadmap for AI and digital innovation in banking, cyber risk safeguards, and talent acquisition for a future-ready workforce.
• A key area of review includes the Priority Sector Lending (PSL) framework and the Lead Bank Scheme to enhance inclusive credit delivery.

Key Concepts Involved:

• Viksit Bharat 2047: The Government of India's vision for India to become a developed nation by the 100th year of its independence in 2047.
• Priority Sector Lending (PSL): A mandate by the Reserve Bank of India for banks to allocate a specified percentage of their total lending to certain sectors deemed crucial for economic development.
• Lead Bank Scheme: A scheme under which a particular bank is assigned a lead role in a district to coordinate banking activities and facilitate economic development.