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(You can now subscribe to our(You can now subscribe to our Economic Times WhatsApp channelNew Delhi: The government is likely to announce a 10-member high-level committee on banking for Viksit Bharat , or its vision of creating a developed country by 2047, with public and private sector representation by the end of October.Its composition is being finalised and is likely to include a former Reserve Bank of India ( RBI ) deputy governor, industry leaders from the fintech sector and an Indian Banks ' Association (IBA) nominee, said people familiar with the matter.Some of the names being considered for the committee include former RBI deputy governor Michael Patra, former financial services secretary M Nagaraju and former State Bank of India chairman Dinesh Khara.Also read | Bandhan Bank promoter to gradually reduce stake to meet RBI norms "The committee will have representation from IBA and sectoral experts, including from fintech companies and the Economic Advisory Council to the Prime Minister (EAC-PM), and will hold interaction with all other stakeholders, including the insurance industry," an official aware of the deliberations said on condition of anonymity, adding that the names of committee members will be finalised at the highest level.The committee was part of the 2026-27 budget announcements to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection.Another official said that the key agenda of the committee, including the terms of reference, is also being finalised.
"Largely, the agenda will focus on building an ecosystem for large banks, deepening credit penetration and preparing the system for unilateral sanctions, artificial intelligence challenges and climate risks," he said.In August, finance minister Nirmala Sitharaman had said that the banking sector is in its strongest position to undertake reforms and that a high-level committee on banking for Viksit Bharat will be announced soon.
"Once the committee forms its views and recommendations, the government will be ready to rev up the Indian economy," she had said.Last month, a paper by the EAC-PM suggested that India should make efforts to consolidate the banks in such a manner that a few big banks of equal size are created without compromising market competition in the industry.Also read |It further recommended that in the future, the agenda for banks should be to mobilise stable deposits to support credit expansion, avoid excessive concentration in unsecured retail or rapidly growing segments, deepen productive lending to micro, small and medium enterprises, infrastructure and green investment, and improve climate-risk assessment.
"Additionally, banks must also strengthen board governance, talent, customer grievance redressal and cyber defence," the paper said.
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New Delhi: The government is likely to announce a 10-member high-level committee on banking for Viksit Bharat , or its vision of creating a developed country by 2047, with public and private sector representation by the end of October.Its composition is being finalised and is likely to include a former Reserve Bank of India ( RBI ) deputy governor, industry leaders from the fintech sector and an Indian Banks ' Association (IBA) nominee, said people familiar with the matter.Some of the names being considered for the committee include former RBI deputy governor Michael Patra, former financial services secretary M Nagaraju and former State Bank of India chairman Dinesh Khara.Also read | Bandhan Bank promoter to gradually reduce stake to meet RBI norms "The committee will have representation from IBA and sectoral experts, including from fintech companies and the Economic Advisory Council to the Prime Minister (EAC-PM), and will hold interaction with all other stakeholders, including the insurance industry," an official aware of the deliberations said on condition of anonymity, adding that the names of committee members will be finalised at the highest level.The committee was part of the 2026-27 budget announcements to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection.Another official said that the key agenda of the committee, including the terms of reference, is also being finalised. "Largely, the agenda will focus on building an ecosystem for large banks, deepening credit penetration and preparing the system for unilateral sanctions, artificial intelligence challenges and climate risks," he said.In August, finance minister Nirmala Sitharaman had said that the banking sector is in its strongest position to undertake reforms and that a high-level committee on banking for Viksit Bharat will be announced soon. "Once the committee forms its views and recommendations, the government will be ready to rev up the Indian economy," she had said.Last month, a paper by the EAC-PM suggested that India should make efforts to consolidate the banks in such a manner that a few big banks of equal size are created without compromising market competition in the industry.Also read |It further recommended that in the future, the agenda for banks should be to mobilise stable deposits to support credit expansion, avoid excessive concentration in unsecured retail or rapidly growing segments, deepen productive lending to micro, small and medium enterprises, infrastructure and green investment, and improve climate-risk assessment."Additionally, banks must also strengthen board governance, talent, customer grievance redressal and cyber defence," the paper said.
