Finance Minister Nirmala Sitharaman stated on Monday that the government will soon establish a powerful banking commission tasked with studying financial sector reforms under the Viksit Bharat concept.
She added that the two-day discussions taking place between Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) at the PSB Confluence event on Monday and Tuesday will form the basis for this commission's work. Sitharaman emphasized that the intensive discussions scheduled for today and tomorrow fall within the waiting period before the announcement of the commission designed to review the banking sector for Viksit Bharat.
"I hope the materials you create from the two-day discussions will be a significant contribution to the commission's consideration. The commission will have these materials during its debates to provide us with its recommendations," she said at PSB Confluence.
Previously, Sitharaman had announced the creation of a high-level banking commission for Viksit Bharat in the Budget for the 2026-27 financial year (FY27). This commission is expected to conduct a comprehensive analysis of the sector, aligning it with India's next stage of growth while ensuring financial stability, inclusivity, and consumer protection.
Government sources indicate that the establishment of the commission is likely to occur this month.
Meanwhile, the Department of Financial Services (DFS) of the Ministry of Finance is conducting a two-day summit of public banks and financial institutions in New Delhi. Seven key topics are being discussed: mobilization of deposits, youth banking services, support for the investment cycle, support for Global Capability Centers (GCCs), infrastructure for agricultural and horticultural value chains, innovations in credit card business, and lending to priority sectors.
The Finance Minister noted that the DFS has approached the selection of these seven areas very carefully and thoughtfully. "DFS has spent time studying the details of what each of these seven issues should focus on, so the substantive material on each is well-researched—we are bringing in the best global practices," concluded Sitharaman.