The Government of India has formed a High Level Committee on Banking for Viksit Bharat, chaired by Shri Suresh N. Patel and consisting of three other distinguished experts. The committee's mission is to assess current banking practices, recommend structural reforms, promote digital innovation, and make India's banking sector globally competitive, financially inclusive, and resilient by 2047.
In an effort to bolster the competitiveness of India's banking sector, the Government of India has established a High Level Committee on Banking for Viksit Bharat. This committee will be led by Shri Suresh N. Patel, former Central Vigilance Commissioner, and will consist of three other esteemed members: Deputy Governor of Reserve Bank of India, Shirish Chandra Murmu; Former MD & CEO of Indian Bank, Padmaja Chunduru; and Former Deputy Governor of Reserve Bank of India, N S Vishwanathan. The Joint Secretary (Banking), Department of Financial Services will serve as the Member Secretary.
The committee's tenure is six months. Its primary objective is to scrutinize current banking practices, identify global best practices, recommend structural reforms, and suggest measures for digital innovation in banking institutions. The committee's scope includes, but is not limited to, assessing capital requirements for banks, boosting private investment, reviewing the Priority Sector Lending framework, and making recommendations on any other matter referred by the Government of India.
Terms of Reference:
– Assess present banking practices and prudential norms, identifying global best practices and providing a roadmap for creating globally competitive banks.
– 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.
– Undertake an assessment of 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.
– Examine differences in cost of capital for business and suggest policy options to boost private investment for sustainable growth.
– Prepare a roadmap for AI and digital innovation in banking institutions while providing for safeguards against cyber risks.
– Suggest a strategy for talent acquisition and capacity building to ensure a future-ready workforce for the banking sector.
– 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.
Source:
Press Information Bureau
