Union Finance Minister Nirmala Sitharaman on 17 August said the Centre will soon constitute a high-level panel on \u2018Banking for Viksit Bharat\u2019, as was proposed in the Budget speech earlier this year, PTI reported.<\/p>\n
\u201cWe expect the announcement of the high-powered committee to look into the banking sector… soon the committee will be announced,\u201d Sitharaman said at the PSB Confluence 2026 (Public Sector Banking) in Delhi.<\/p>\n
As per Sitharaman, the committee will submit its thoughts and recommendations to the government.<\/p>\n
In the Budget, \u2018Banking for Viksit Bharat\u2019 was proposed as a means to conduct comprehensive review of the sector and align it with India's next phase of growth, the report added.<\/p>\n
\u201cI propose setting up a \u2018High Level Committee on Banking for Viksit Bharat\u2019 to comprehensively review the sector and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection,\u201d she had stated in February.<\/p>\n
Addressing the gathering, she said the committee would examine recommendations emerging from the conclave for its suggestions, with bankers and other stakeholders expected to play a key role in shaping the banking framework and next phase of reforms, as per an ANI report.<\/p>\n
The finance minister also highlighted that non-performing assets (NPAs) of banks are at their lowest level ever, providing a stronger foundation for the banking sector to undertake further reforms and support economic growth.<\/p>\n
Stressing the significance of the conclave, Sitharaman said, \u201cWe are in 2026, so less than or short of 20 years is what we have before us.\u201d<\/p>\n
\u201cThere couldn't have been a better time to talk about banking for Viksit Bharat, especially for the journey that all of you have gone through, come out of it without the recognition of difficulties and coming out towards the root of reform,\u201d she added.<\/p>\n
Sitharaman added that the Department of Financial Services (DFS) had worked on seven themes that would be important for taking the banking and financial sector forward. The themes of discussion are \u2014 banking for youth, supporting the investment cycle, global capability centres, agriculture and horticulture value chain infrastructure, priority sector lending and reimagining credit card business.<\/p>\n
According to the minister, the DFS, for the first time during her tenure, had prepared detailed research documents on all seven themes selected for discussion at the meeting. She singled out the document on youth as particularly striking, noting that it analyses India's young population across different age groups and life stages.<\/p>\n
She pointed out that nearly 29% of India's population falls in the 15-29 age group, and said banks must factor this demographic profile into their planning and strategy.<\/p>\n
\u201cI must credit the DFS for having worked on the seven different topics that shall be important to take the banking and financial sector forward,\u201d Sitharaman added.<\/p>\n
The minister further stressed that the recommendations emerging from the two-day PSB conference would provide important inputs for the proposed high-powered committee on banking reforms.<\/p>\n
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br>
\nAs chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br>
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\n<br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in<\/a> <br> X\/ Twitter handle: <a href="https:\/\/x.com\/scribeJocelyn">@scribeJocelyn<\/a> <br> LinkedIn: <a href="https:\/\/in.linkedin.com\/in\/jocelyn-fernandes-journalist">LinkedIn<\/a><\/p>\n