High-Level Committee on Banking for Viksit Bharat: Composition, Objectives and Terms of Reference

The Government of India has formed a High-Level Committee on Banking for Viksit Bharat to recommend holistic banking reforms. This committee, chaired by former Central Vigilance Commissioner Suresh N. Patel, will look into banking regulations, banking structure, capital sufficiency, technological advancements and financial inclusion. This will help India’s banks become competitive on a global scale, and create a robust banking sector that can help the nation’s economic growth under the Viksit Bharat initiative.

High Level Committee on Banking for Viksit Bharat

The committee has been formed by the Ministry of Finance to review the banking sector in India and recommend banking reforms.

This will look at the current methods used in banking, look at world best practice’s, and recommend changes to the banking industry to suit India’s economic needs. Overall, it will seek to develop a banking structure that will allow sustainable economic growth, ensure financial inclusion and meet the diverse credit needs of businesses and individuals.

Union Finance Minister Nirmala Sitharaman has announced the formation of the committee in her Union Budget 2026-27 speech.

The committee will operate for 6 months and make recommendations around various areas of the banking/financial industry.

Members of the Banking Committee

The committee will be chaired by former Central Vigilance Commissioner Suresh N. Patel. The committee will consist of members with experience in banking regulation, public sector banking and financial institutions.

This gives the committee experience in banking management, central banking, financial regulation and public sector financial institutions.

Terms of Reference

The committee has a wide remit around the banking structure, regulations, financial sufficiency and technology readiness in India.

1. Review of Banking Practices and Prudential Norms
2. Banking Reforms
3. Capital Adequacy requirements for financial institutions.
4. Cost of Capital and Private Investment.
5. Artificial Intelligence in Banking.
6. Review of Priority Sector Lending and Lead Bank scheme.

What is Priority Sector Lending?

Priority Sector Lending is a system set up by the Reserve Bank of India that means banks must lend to certain sectors of the economy.

These sectors are,

• Agriculture
• Micro, Small and Medium Enterprises (MSMEs)
• Export Credit
• Education
• Housing
• Social Infrastructure
• Renewable Energy
• Other categories as defined by the RBI.

This is to ensure the important but under-served sectors of the economy receive sufficient institutional lending.