Banking reforms panel to be set up soon, says Nirmala Sitharaman

The government will soon announce the members of its high-level banking reforms committee, Finance Minister Nirmala Sitharaman said on Monday.The government is set to announce the members of a high-level committee on banking reforms soon, Finance Minister Nirmala Sitharaman said on Monday. A senior Finance Ministry official indicated that the panel is likely to be formed this month.The committee will examine how India’s banking sector can better support the country’s long-term economic goals and its vision of becoming a developed nation by 2047.COMMITTEE TO FOCUS ON VIKSIT BHARATSpeaking at the first day of the two-day PSB Confluence 2026 in New Delhi, Sitharaman said the government would move quickly after the committee submits its recommendations, reported Moneycontrol.The proposed panel was first announced in the Union Budget 2026-27. The government had said the High-Level Committee on Banking for Viksit Bharat would review the banking sector and suggest changes needed to align it with India’s growth ambitions. The committee has not yet been formally constituted.BANKING SECTOR IN STRONGER POSITIONSitharaman said the committee would look at the role banks need to play in helping India achieve its Viksit Bharat goal. The finance minister also pointed to the improvement in the financial health of Indian banks. She said bad loans, or non-performing assets (NPAs), are at their lowest levels, giving banks a stronger base to take up further reforms.WHY BANKING REFORMS MATTERBanks will have an important role to play as India aims to expand its economy and increase access to credit. The proposed committee is expected to examine what changes may be needed in the banking sector to support this growth over the coming decades.The government’s decision to set up the panel comes at a time when banks have strengthened their balance sheets and reduced bad loans.Once constituted, the committee will study the sector and submit its recommendations. The government has indicated that it plans to act quickly on those recommendations.- EndsPublished By: Jasmine anandPublished On: Aug 17, 2026 12:20 IST