New Delhi [India], October 30 (ANI): The government has constituted a high-level committee headed by former Central Vigilance Commissioner Suresh N Patel to review India's banking sector and recommend major regulatory, legal and structural reforms aimed at making Indian banks globally competitive and strengthening credit availability.

The Ministry of Finance, in an official release issued on Friday, said the six-month committee will examine banking regulations, capital requirements, lending practices, digital innovation and financial inclusion as part of India's Viksit Bharat 2047 vision.

'The Government of India has constituted a High Level Committee on Banking for Viksit Bharat to 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,' the ministry said.

The committee was announced by Finance Minister Nirmala Sitharaman in her Union Budget 2026-27 speech.

Besides Patel as chairman, the panel will include RBI Deputy Governor Shirish Chandra Murmu, former Indian Bank MD and CEO Padmaja Chunduru, and former RBI Deputy Governor N S Vishwanathan as members.

The Joint Secretary (Banking) in the Department of Financial Services will serve as member secretary.

According to the terms of reference outlined in the ministry's release, the committee will review existing banking practices and regulatory standards, identify international best practices and prepare a roadmap for developing globally competitive Indian banks.

It will also examine the legal and regulatory frameworks governing banks, including Regional Rural Banks and cooperative banks, and suggest measures to improve efficiency and ease of banking.

The panel has been tasked with assessing long-term capital requirements across banks, development financial institutions and non-banking financial companies (NBFCs), along with possible funding sources to support future credit growth.

The ministry said the committee would 'examine differences in cost of capital for business, and suggest policy options to boost private investment for sustainable growth.'

Another major area of focus will be the adoption of artificial intelligence and digital technologies across banking institutions, alongside measures to strengthen cybersecurity.

The committee will 'prepare a roadmap for AI and digital innovation in banking institutions, while providing for safeguards against cyber risks,' according to its terms of reference.

It will also recommend measures for talent acquisition and capacity building to prepare the banking workforce for future requirements.

Further, the panel will review the Priority Sector Lending framework and Lead Bank Scheme to assess their effectiveness in supporting financial inclusion and credit delivery in line with changing economic priorities.

The committee has been given a tenure of six months to carry out its review and formulate recommendations. (ANI)