High-level committee to be formed soon for banking reforms:Finance Minister says banks have lowest NPA, this is right time to bring reforms

The government will soon announce the members and structure of its high-level committee for the banking sector. Finance Minister Nirmala Sitharaman made this announcement on Monday on the first day of the two-day ‘PSB Confluence 2026’ held in New Delhi. According to a senior source from the Finance Ministry, this committee may be formed this month itself (March 2026). Committee proposal was placed in Budget 2026-27 The proposal to form this high-level committee was first placed in the Union Budget 2026-27. Finance Minister Sitharaman had announced the plan to create a high-level committee on banking for Viksit Bharat (Developed India). Its main objective is to align and review the banking sector according to the country’s economic development goals. However, the formal formation of this committee is yet to take place. Focus will be on the Viksit Bharat 2047 target The Finance Minister clarified that this panel will focus its attention on the role of banks in making India a developed nation (Viksit Bharat) by 2047. She said during the event, “The committee will review the role of banks towards Viksit Bharat. The year 2047 is not very far now.” NPA at lowest level, right time to implement reforms The Finance Minister mentioned the reforms in the country’s banking sector and asset quality, emphasizing the need for new changes. Sitharaman said, “Non-Performing Assets (NPA) in the banking sector are at their lowest level ever. In such a situation, Indian banks are now in a better position than before to adopt new banking reforms.” Work will be done swiftly on recommendations as soon as report arrives Nirmala Sitharaman assured that after the committee submits its report, the government will not delay in implementing the suggested recommendations. She said, “As soon as the committee submits its report, we will act swiftly on its recommendations.” Public Sector Banks Record ?1.98 Lakh Crore Profit The financial health of the country’s government banks is continuously improving. In the financial year 2025-26 (FY26), Public Sector Banks (PSBs) have collectively recorded a net profit of over ?1.98 lakh crore. Based on this strong financial position, the government is now taking steps towards major banking reforms. What is the ‘Viksit Bharat 2047′ Vision? The Government of India’s goal is to make India a developed nation by the time the country completes 100 years of independence (2047). To achieve this vision, large-scale improvements are needed in infrastructure, economic development, and the banking system. What are NPAs? Non-Performing Assets (NPA) refer to those loans or advances whose interest or principal is not recovered within the stipulated time (generally 90 days). A reduction in banks’ NPAs is considered an indicator of their strong financial position.