In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced the formation of a high-level committee on banking aimed at reviewing and modernizing India’s financial system to align with the Viksit Bharat 2047 vision. The panel’s work will be pivotal in supporting India’s journey toward a $30 trillion economy, ensuring financial stability, inclusion, and robust consumer protection along the way.
Key Objectives and Focus Areas
The committee will focus on strengthening the backbone of the Indian banking sector while introducing reforms to modernize Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs), and capital markets. Some of the major priorities include:
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Strengthening Banking Structure: Reviewing the role of banks in financing growth, improving credit delivery, and adopting technology to meet the needs of a modern economy.
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NBFC & HFC Modernization: Consolidating public sector NBFCs into stronger entities and encouraging technology adoption to enhance efficiency and risk management.
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Digital Public Infrastructure & “Finternet”: A forward-looking initiative to implement a unified ledger-based digital financial network, enabling tokenized money and assets, reducing transaction costs, and unlocking idle capital.
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Capital Market Development: Transitioning from a bank-dominated system to a more balanced financial ecosystem, promoting equity and bond markets for sustainable growth.
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Insurance & Pension Reforms: Simplifying product approvals, introducing composite licenses for insurers, and expanding pension coverage to the informal sector, creating a multi-pillar framework for social security.
Vision for 2047: A Financially Inclusive India
The reforms are designed not just to modernize the banking system but to deepen financial inclusion. The goal is to move beyond mere account opening to meaningful usage of financial services, ensuring that all citizens have access to credit, insurance, and investment opportunities. The committee will also focus on:
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Robust Capital Base: Ensuring banks raise sufficient capital to meet the demands of a rapidly growing economy.
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Governance & Risk Management: Strengthening supervisory standards to handle emerging challenges such as cyber threats and climate-related financial risks.
Next-Generation Reforms
This banking panel is part of a broader set of reforms aimed at achieving a developed India by 2047, alongside initiatives for non-financial regulatory reforms and programs linking education to employment. By combining structural reform, technological innovation, and inclusive finance, India aims to create a resilient financial system that can power decades of sustained growth.