Govt to set up high-level banking committee very soon: Sitharaman

The government will very soon set up the high-powered banking committee that will examine reforms for the sector in Viksit Bharat, and the two-day deliberations among Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) at the PSB Confluence will act as a template for the panel to build upon, Finance Minister Nirmala Sitharaman said on Monday.

“The intensive discussions of today and tomorrow come at a time when we expect the announcement on the high-powered committee to look into banking for Viksit Bharat. Soon the committee will be announced,” Sitharaman said at PSB Confluence. “The material you produce from the two days' discussions will hopefully provide substantive material for the committee to review. The committee would have that material with them even as they deliberate to give us their recommendations,” she added.

Sitharaman had announced a high-level committee on banking for Viksit Bharat in the Budget for 2026-27 (FY27). This committee will comprehensively review the sector and align it with India’s next phase of growth while safeguarding financial stability, inclusion and consumer protection.

Sources in the government indicate that the committee is likely to be set up as soon as this month.

Meanwhile, the finance ministry’s Department of Financial Services (DFS) is holding a two-day conclave of PSBs and PFIs in New Delhi to discuss seven themes: deposit mobilisation, banking for youth, supporting the investment cycle, supporting Global Capability Centres (GCCs), agriculture & horticulture value chain infrastructure, innovation in the credit card business, and priority sector lending.

The DFS has very carefully and thoughtfully decided the seven themes for the conclave, the finance minister mentioned. “The DFS has spent time looking into the details of what each of these seven topics should be focusing on, so the content material on each of them is well researched—bringing in the best practices from around the globe,” Sitharaman said.