Sitharaman announces high-level Banking panel for Viksit Bharat

New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced the formation of a ‘High-Level Committee on Banking for Viksit Bharat’ to review the sector comprehensively and align it with India’s next phase of growth.

Speaking in the Lok Sabha, she said the banking sector, now marked by strong balance sheets, historic profitability, improved asset quality, and coverage of over 98 per cent of villag-es, is well-positioned for reform-led growth.

The committee will focus on safeguarding financial stability, inclusion, and consumer protection while recommending measures to strengthen banks for long-term development. Sitharaman also outlined a vision for NBFCs, setting clear targets for credit disbursement and technology adoption, and proposed restructuring the Power Finance Corporation and Rural Electrification Corporation to improve scale and efficiency in public sector NBFCs.

Sitharaman said the Foreign Exchange Management (Non-debt Instruments) Rules will be reviewed for a modern, investor-friendly framework, while an expert panel will assess banking, consult stakeholders, and finalise terms of reference. No PFC-REC merger is planned

currently, she added.