High Level Committee Formed to Modernize Indian Banking Sector

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Key takeaways

The central government set up a new expert panel chaired by Suresh N. Patel to modernize the nation's financial system for Viksit Bharat 2047.
The panel has a 6-month deadline to submit actionable reform ideas across banking laws, technology, and operations.
Key goals include updating legacy frameworks like Priority Sector Lending, integrating Artificial Intelligence, and strengthening cyber security.
The committee will assess capital requirements for Development Financial Institutions and Non-Banking Financial Companies to boost private investment.

The Indian government set up a new high level panel following the Union Budget 2026-27 announcement.
This panel will study the financial system to help build a strong foundation for Viksit Bharat 2047.
It will suggest big changes to laws, regulations, and institutions to make Indian banks globally competitive, secure, and accessible to everyone.

Former Central Vigilance Commissioner Suresh N. Patel leads this expert committee as its chairman.
The panel must complete its study and present its final suggestions within 6 months.

The team includes Shirish Chandra Murmu, who is currently a Deputy Governor at the Reserve Bank of India.
Former Indian Bank head Padmaja Chunduru brings her leadership experience as a member.
Former Reserve Bank of India Deputy Governor N. S. Vishwanathan also serves on the panel.
The Joint Secretary for Banking from the Department of Financial Services acts as the member secretary.

The panel will check current rules for regular banks, Regional Rural Banks, and Cooperative Banks to simplify everyday operations.
It will study future money needs for banks, Development Financial Institutions, and Non-Banking Financial Companies to lower borrowing costs.
The group plans to update old programs like Priority Sector Lending and the Lead Bank Scheme using modern data tools.
It will create plans to adopt Artificial Intelligence safely while protecting customers from online bank fraud.
Members will study global banking rules to upgrade Indian standards and train banking staff for future challenges.