Govt sets up high-level banking panel under Suresh N. Patel

Vishwanathan, former deputy governor of RBI, the statement said.The joint secretary (banking) in the department of financial services (DFS) will be the member secretary. The committee will have a tenure of six months.Budget announcementIn her Union Budget 2026-27 speech, Union finance minister Nirmala Sitharaman had announced the setting up of a high-level committee on banking to comprehensively review the sector and align it with the requirements of a developed India by 2047.The proposed review was aimed at assessing the banking sector's preparedness to support the country's next phase of economic growth while ensuring financial stability, inclusion and access to credit.The committee has been tasked with examining existing banking practices and prudential norms, identifying global best practices and recommending a roadmap for developing globally competitive Indian banks.Frameworks to be reviewedIt will also review the regulatory and legal frameworks governing banks, including regional rural banks and cooperative banks, and suggest reforms to improve operational efficiency and ease of banking.The panel will assess the long-term capital requirements of banks, development financial institutions and non-banking financial companies (NBFCs), and recommend funding sources and mechanisms to support credit growth.

It will also examine differences in the cost of capital for businesses and suggest policy measures to boost private investment and support sustainable growth.The terms of reference also include preparing a roadmap for artificial intelligence and digital innovation in banks, with safeguards against cyber risks. The committee will recommend strategies for talent acquisition and capacity building to prepare the banking workforce for future requirements.

Further, it will review the priority sector lending framework and the Lead Bank Scheme to assess their relevance, effectiveness and coordination in ensuring inclusive, balanced and data-driven credit delivery in line with evolving economic priorities and financial inclusion goals.