Centre sets up Banking for Viksit Bharat committee

The Finance Ministry has named a Suresh Patel-led panel to review banking, NBFC funding, priority sector lending and AI in banks.

The Finance Ministry has constituted a high-level committee on "Banking for Viksit Bharat", chaired by former Central Vigilance Commissioner Suresh N. Patel, according to a ministry statement dated 30 October 2026 and reported by IANS-based outlets on 31 October. The panel will recommend reforms to make Indian banking globally competitive, inclusive and resilient by 2047. Its remit reaches well beyond banks, into NBFC funding, cooperative banks and the priority sector rules that shape much of India's small-ticket lending.

Who is on the panel

Besides Patel as chair, the members named are Shirish Chandra Murmu, a Deputy Governor of the Reserve Bank of India (RBI); Padmaja Chunduru, former managing director and chief executive of Indian Bank; and N S Vishwanathan, a former RBI Deputy Governor. The member secretary is the Joint Secretary, Banking, in the Department of Financial Services. Finance Minister Nirmala Sitharaman had announced the plan for such a committee in the Union Budget for 2026-27, the reports say. The coverage does not give a reporting deadline.

What it has been asked to examine

The terms of reference are broad. As listed in the reports, the committee will:

- Assess current banking practices and prudential norms (the safety rules on capital, provisions and risk), identify global best practice and propose a roadmap for globally competitive banks. - Review the legal and regulatory framework, including Regional Rural Banks and cooperative banks, and suggest efficiency reforms. - Assess long-term capital needs of banks, development financial institutions and NBFCs, and recommend ways to fund credit growth. - Examine differences in the cost of capital across businesses and suggest how to lift private investment. - Prepare a roadmap for AI and digital innovation in banking, with safeguards against cyber risk. - Suggest a plan for hiring and training the banking workforce. - Review the priority sector lending framework and the Lead Bank Scheme for relevance and effectiveness. - Take up any other matter the government refers to it.

Background in plain English

Priority sector lending is the rule that requires banks to direct a set share of their loans to areas the government wants to support, such as agriculture, small businesses and housing. The Lead Bank Scheme assigns one bank in each district to coordinate credit and financial inclusion efforts there. Both date back decades, and both shape how banks price and distribute loans in smaller towns. A review of them is a significant item, and the reports do not say what changes the government expects.

NBFCs depend on banks for much of their borrowing, so a review of long-term funding "sources and mechanisms" could touch that link, though the reports do not say so.

What is confirmed and what is not

Confirmed by both reports: the formation, chair, members, member secretary and the review areas. Not stated: the reporting deadline, any public consultation, or whether recommendations bind regulators. Neither report quotes an official.

What it means for readers

Nothing changes for borrowers or depositors today. A committee recommends; the RBI, the government and Parliament decide. The list does show where policy attention is heading, so lenders and fintechs built on co-lending or priority sector eligibility may want to follow any consultation it opens.

What to watch next

- A reporting deadline or timetable, which neither report gives. - Any call for public or industry comments. - Statements from the RBI on how Deputy Governor Murmu's role links the committee to the central bank. - Early signals on priority sector lending, since changes there would affect small-business and rural credit.

Key takeaways

- The Finance Ministry formed a Suresh N. Patel-led committee on "Banking for Viksit Bharat" in a statement dated 30 October 2026. - Its terms cover prudential norms, RRBs and cooperative banks, NBFC and DFI capital needs, AI in banking and priority sector lending. - No reporting deadline has been published, and the committee only recommends; it cannot change rules itself. - Lenders and fintechs should watch for consultations, because the panel's remit touches the funding and rules they depend on.

Sources

- [Ommcom News: Centre sets up high-level committee on 'Banking for Viksit Bharat'](https://ommcomnews.com/business-news/centre-sets-up-high-level-committee-on-banking-for-viksit-bharat/) - [Punjab Kesari English: Centre sets up high-level committee on 'Banking for Viksit Bharat'](https://english.punjabkesari.com/india/centre-sets-up-high-level-committee-on-banking-for-viksit-bharat)

Tags: Regulation RBI NBFC Banking reform Priority sector lending