India Forms High Level Committee to Reform Banking Sector
The Government of India established a five-member committee led by Suresh N. Patel to recommend structural and regulatory banking reforms by April 2027.
The Ministry of Finance established the High Level Committee on Banking for Viksit Bharat on October 30, 2026. Announced by Finance Minister Nirmala Sitharaman during the 2026-27 Budget speech, the committee is tasked with recommending structural, institutional, regulatory, and legislative reforms to ensure the Indian banking sector is globally competitive, resilient, and financially inclusive by 2047.
Chaired by former Central Vigilance Commissioner and former Andhra Bank CEO Suresh N. Patel, the five-member panel includes Reserve Bank of India Deputy Governor Shirish Chandra Murmu and former Deputy Governor N S Vishwanathan. The committee has a six-month tenure to submit its recommendations by April 2027.
The panel's mandate includes assessing prudential norms, reviewing legal frameworks for Cooperative and Regional Rural Banks, and evaluating long-term capital requirements for banks and Non-Banking Financial Companies. It will also develop roadmaps for AI adoption, digital innovation, and cybersecurity safeguards, while reviewing the Lead Bank Scheme and Priority Sector Lending framework. Industry observers expect the committee to address foreign direct investment approvals, voting rights caps for large shareholders, and corporate entry into the banking sector.
