Following the Budget announcement, Finance Ministry on Friday (30 Oct) announced setting up the ‘High Level Committee on Banking for Viksit Bharat.’ It will be chaired by Suresh N. Patel, former Central Vigilance Commissioner, and will have three members.     The Committee will “undertake a review of India’s banking sector and recommend structural, institutional, regulatory and legislative reforms necessary to make it globally competitive, financially inclusive, and resilient for Viksit Bharat, 2047,” a statement issued by the Finance Ministry said. The Committee will have Shirish Chandra Murmu (Deputy Governor, Reserve Bank of India), Padmaja Chunduru (Former MD & CEO, Indian Bank) and N S Vishwanathan (Former Deputy Governor, Reserve Bank of India) as members. The Joint Secretary (Banking), Department of Financial Services will be the Member Secretary of the Committee. The tenure of the Committee shall be six months.     The Terms of Reference of the Committee include seven items. First, it will assess the present banking practices and prudential norms, identify global best practices, and adapt them suitably for the Indian banking system, while also providing a roadmap for creating globally competitive banks. Second, it will review the existing regulatory and legal frameworks for banks, including regional rural banks and cooperative banks, and suggest reforms to bring in efficiency and enable ease of doing banking for Viksit Bharat.      Third, it will undertake assessment of the long-term capital requirements for banks, including development financial institutions and non-banking financial companies, with recommendations on funding sources and enabling mechanisms to support credit growth. Fourth, it will examine differences in cost of capital for business and suggest policy options to boost private investment for sustainable growth.     Fifth, it will prepare a roadmap for AI and digital innovation in banking institutions, while providing for safeguards against cyber risks. Further, to suggest a strategy for talent acquisition and capacity building to ensure a future-ready workforce for the banking sector. Sixth, it will review the priority sector Lending framework and Lead Bank Scheme to assess their relevance, effectiveness, and coordination in promoting inclusive, balanced, and data-driven credit delivery aligned with evolving economic priorities and financial inclusion goals. 

And seventh, it will make recommendations on any other matter referred to the Committee by the Government of India.