Suresh N Patel to Chair New Banking Reforms Committee
The Union finance ministry has established a committee led by former CVC Suresh N Patel to recommend banking reforms aimed at enhancing global competitiveness.
The committee will focus on banking regulations, capital requirements, and digital innovation.
Members include RBI Deputy Governor Shirish Chandra Murmu and former Indian Bank CEO Padmaja Chunduru.
The committee has six months to propose reforms to strengthen India's banking sector.
In a significant move to revamp the banking sector, the Union finance ministry has announced the formation of a high-level committee chaired by Suresh N Patel, a veteran with over 30 years of experience in banking. This initiative, part of the Union Budget 2026-27, aims to recommend essential reforms to enhance the global competitiveness of Indian banks and align them with the financing needs of a developed economy.
The committee, officially named the High Level Committee on Banking for Viksit Bharat, will comprise six members, including prominent figures such as Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India, and Padmaja Chunduru, former Managing Director of Indian Bank. The committee is tasked with a six-month timeline to complete its review and submit recommendations by April 2027.
Among its key objectives, the committee will evaluate the existing priority sector lending framework and the Lead Bank Scheme, focusing on their effectiveness in delivering inclusive credit. There is a growing emphasis on data-driven lending practices, which are crucial for addressing the evolving economic landscape. The Economic Advisory Council has previously highlighted the need for a review of the priority sector lending framework to ensure it better supports small farmers and marginalized communities.
The committee will also assess the capital requirements of banks and non-banking financial companies, aiming to identify sustainable funding sources to support credit growth. Experts, including Sachin Sachdeva from Icra, have stressed the importance of adequate capital and competitive funding in fostering strong credit growth, which is vital for meeting India's rising investment demands.
As the committee embarks on its mandate, it will also explore the integration of artificial intelligence and digital innovations in banking, alongside measures to mitigate cyber risks. The broader implications of this committee's work could lead to a more resilient banking sector, capable of supporting India's economic ambitions and expanding its reach in the global financial landscape.
