Finance Minister Nirmala Sitharaman said on Monday that the government will "soon" announce the high-level committee on banking reforms, according to Business-Today. Speaking at the conclave of 12 public sector banks (PSBs) and public financial institutions in New Delhi, Sitharaman lauded the sector's improved asset quality and emphasised that the future of banking must "reflect" the aspirations of India's youth.
Committee Mandate and Timeline
The high-level committee was announced by Sitharaman in the budget 2026-27 to review the sector's alignment with India's growth goals, the report said. A senior finance ministry official indicated that the high-level panel may see the light of the day by the end of this month. The finance minister also said the deliberations from the two-day conclave shall provide inputs to the high-level committee on banking for Viksit Bharat.
Sitharaman's Remarks
In her address to the conclave, Sitharaman linked the formation of the committee directly to the work being done by the banks:
"Sooner the committee will be announced and the material that you are producing from [the] two-day discussions on the basis of a well-researched set of documents, which have been shared with you in advance, will hopefully provide the substantive meat for the committee to also look at," said Sitharaman.
The remark underscores that the review will be built on the structured submissions of the PSBs and financial institutions rather than starting from a blank slate.
Conclave Themes
Four of the seven themes were taken up for detailed deliberations on the inaugural day:
- Deposit mobilisation
- Banking for youth
- Supporting the investment cycle
- Global capability centres (GCCs)
| Item | Detail |
|---|---|
| Committee announced in | Budget 2026-27 |
| Mandate | Review banking sector alignment with India's growth goals |
| Expected panel announcement | End of this month, per senior finance ministry official |
| Input source | Deliberations from the two-day PSB conclave |
| Inaugural day themes | Deposit mobilisation, banking for youth, investment cycle, GCCs |
Banking Sector Context
The finance minister lauded the sector's improved asset quality at the conclave, according to Business-Today. This improvement provides the backdrop for a reform review that will examine how well the banking system is aligned with India's growth aspirations. The themes discussed on the inaugural day — deposit mobilisation, banking for youth, supporting the investment cycle and global capability centres — are set to be examined as part of the committee's review. The finance minister said the deliberations from the conclave shall provide inputs to the high-level committee, indicating that the banks' work over the two days will feed directly into the reform process.
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