In a major move announced during the Union Budget 2026-27, Finance Minister Nirmala Sitharaman revealed that the government will set up a high-level committee to review India’s banking system and chart a roadmap for the country’s next stage of economic growth—aligned with the vision of Viksit Bharat 2047.
The committee is expected to examine the functioning of banks, including public and private sector institutions, and propose reforms to improve efficiency, resilience, and inclusivity. In addition, the panel will focus on bolstering Non-Banking Financial Companies (NBFCs), a sector that plays a crucial role in providing credit to small businesses, micro-enterprises, and underserved segments of the economy.
Addressing Parliament during her ninth consecutive Budget presentation, Sitharaman emphasized that the initiative aims to strengthen financial stability, protect consumers, and enhance financial inclusion. The high-level panel will provide actionable recommendations to modernize banking operations, improve regulatory oversight, and facilitate credit flow to key sectors driving India’s economic growth.
Experts suggest that this move could be pivotal in supporting infrastructure expansion, SMEs, and rural development, while also helping banks and NBFCs manage emerging risks in a rapidly changing global financial environment.
By establishing this committee, the government signals its intent to create a robust, forward-looking financial architecture that not only sustains growth but also empowers citizens and businesses across India.