Nirmala Sitharaman announces high-level panel on banking for Viksit Bharat

Finance Minister Nirmala Sitharaman has announced a high-level committee on banking to support Viksit Bharat goals. The panel will review sector performance, strengthen financial stability and improve efficiency, while reforms for NBFCs and foreign investments are also planned

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

Observing that the banking sector today is characterised by strong balance sheets, historic highs in profitability, improved asset quality and coverage exceeding 98 per cent of villages in the country, she said the country is well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth of the sector at this juncture.

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“I propose setting up a ‘High Level Committee on Banking for Viksit Bharat’ to comprehensively review the sector and align it with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection,” she said while making a Budget speech in the Lok Sabha.

The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption, she said.

In order to achieve scale and improve efficiency in public sector NBFCs, she said, as a first step, it is proposed to restructure the Power Finance Corporation and Rural Electrification Corporation.

“I propose a comprehensive review of the Foreign Exchange Management (Non-debt Instruments) Rules to create a more contemporary, user-friendly framework for foreign investments, consistent with India’s evolving economic priorities,” she said.