Banking leaders urged to shape reforms as government readies panel for Viksit Bharat 2047
Aug 17, 2026
Synopsis
Finance Minister Nirmala Sitharaman said the government will soon set up a high-powered committee to chart the banking sector's role in building a "Viksit Bharat", with the panel set to draw on ideas and research emerging from two days of intensive discussions with banking sector stakeholders. Calling India's banks well placed to undertake reforms with NPAs at their lowest levels, Sitharaman said the committee's recommendations would help determine the future direction of banking and enable the government to accelerate reforms and "rev up the Indian economy" over the next two decades.
The government will soon set up a high-powered committee to examine the banking sector's role in building a "Viksit Bharat", Finance Minister Nirmala Sitharaman said, with the panel expected to draw on material from two days of intensive banking reform discussions
Finance Minister Nirmala Sitharaman on Monday called on banking leaders to submit recommendations on reforms needed to align the sector with India's development ambitions, as the government prepares to set up a high-powered committee to examine the role of banking in achieving Viksit Bharat 2047.
Addressing the Public Sector Banks (PSB) Conclave 2026, Sitharaman said the government would soon announce the committee and place before it the recommendations and outcomes emerging from the two-day conference.
The panel will examine the suggestions emerging from the conclave and make recommendations on the future direction of the banking sector, with bankers expected to play a key role in shaping the framework needed to support India's economic growth over the next two decades.
"We are in 2026, so less than or short of 20 years is what we have before us," Sitharaman said, underlining the urgency of preparing the banking sector for the country's long-term development goals.
"There couldn't have been a better time to talk about banking for Viksit Bharat, especially for the journey that all of you have gone through, come out of it without the recognition of difficulties and coming out towards the root of reform," she said.
Sitharaman said the banking sector was in a stronger position to undertake further reforms, with non-performing assets (NPAs) at their lowest level ever.
The Finance Minister said the Department of Financial Services (DFS) had identified seven themes for discussions at the conclave, covering issues that would be important for the banking and financial sector's next phase of growth.
The themes include banking for youth, supporting the investment cycle, global capability centres, agriculture and horticulture value-chain infrastructure, priority sector lending and reimagining the credit card business.
Sitharaman said the DFS had, for the first time during her tenure, prepared detailed research documents on all seven themes to support discussions at the conclave.
She highlighted the document on youth in particular, saying it examined India's young population across different age groups and stages of life. Nearly 29% of India's population is in the 15-29 age bracket, she noted, and said banks needed to factor the demographic profile into their planning and strategy.
"I must credit the Department of Financial Services for having worked on the seven different topics that shall be important to take the banking and financial sector forward," she said.
The two-day conclave is expected to generate recommendations that will feed into the proposed high-powered committee's work. With banks having undergone significant reforms and asset quality improving sharply, the government is now looking to shape the sector for the evolving credit, investment and financial needs of the Indian economy.
The proposed exercise is aimed at aligning India's banking architecture with the broader objectives of Viksit Bharat 2047, with bankers and other stakeholders expected to contribute to the next phase of reforms.
[The Economic Times]
