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Budget 2026: High-Level Banking Committee Set for Viksit Bharat Growth Push

Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026-27, has proposed establishing a High-Level Committee on Banking for Viksit Bharat to comprehensively review and align the banking sector with India's next phase of growth. The committee aims to safeguard financial stability, inclusion, and consumer protection while building on the sector's current strength of robust balance sheets and profitability. Additionally, the budget outlines restructuring plans for Public Sector NBFCs like the Power Finance Corporation and Rural Electrification Corporation to achieve scale and efficiency. The Economic Survey tabled ahead of the budget projects India's real GDP growth for 2026-27 in the range of 6.8-7.2 percent.

Key Points: Budget 2026: Banking Committee for Viksit Bharat Announced

  • New banking committee for sector review
  • Focus on financial stability and inclusion
  • Restructuring of PFC and REC proposed
  • GDP growth projected at 6.8-7.2%
2 min read

Budget 2026: High-level committee on Banking to be set up for India's next phase of growth

FM Nirmala Sitharaman proposes a High-Level Committee on Banking to review and align the sector with India's next growth phase in Budget 2026.

"I propose setting up a 'High Level Committee on Banking for Viksit Bharat' - Nirmala Sitharaman"

New Delhi, February 1

Presenting the Budget, Finance Minister Nirmala Sitharaman has proposed 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.

"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, in her 90-minute-long Budget speech.

The finance minister asserted that the Indian 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.

"At this juncture, we are well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth of this sector," she said.

Further, to achieve scale and improve efficiency in Public Sector NBFCs, the finance minister proposed, as a first step, restructuring the Power Finance Corporation and Rural Electrification Corporation.

"The vision for NBFCs for Viksit Bharat has been outlined with clear targets for credit disbursement and technology adoption," she said, spelling out proposals for the financial sector.

Presenting the Budget, Finance Minister Nirmala Sitharaman also announced a set of indirect tax measures in the Union Budget 2026-27, aimed at further simplifying the tariff structure, supporting domestic manufacturing, promoting export competitiveness, and correcting duty inversion.

Finance Minister Sitharaman presented her record ninth consecutive Union budget today in the Parliament.

On Thursday, Union Finance Minister Nirmala Sitharaman tabled the Economic Survey of India in Parliament for the financial year 2025-26.

The tabling of the Economic Survey ahead of the Budget follows the long-standing tradition of outlining the state of the economy before detailing future fiscal plans. The document provided a comprehensive, data-backed review of the economy's performance over the previous year and offers a broad roadmap for future policy direction. As the government's flagship annual report, it reviews key economic developments over the past 12 months.

India's real GDP growth for 2026-27 is projected to be 6.8-7.2 per cent, reflecting sustained medium-term growth capacity amid a challenging global environment.

- ANI

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Reader Comments

P
Priya S
This is a forward-looking move. With banking reaching 98% of villages, the next phase must be about quality of service and digital literacy, especially for our elders in rural areas. Glad consumer protection is mentioned.
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Rohit P
Restructuring PFC and REC is crucial for power sector financing. Hope this leads to cheaper and more reliable credit for renewable energy projects. India's growth needs a strong green banking framework. 🌱
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Sarah B
As someone working in fintech, the focus on technology adoption for NBFCs is the key takeaway. Bridging the gap between traditional banks and digital lenders will unlock massive potential for financial inclusion.
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Vikram M
Madam Sitharaman's ninth budget! The stability in leadership is good for long-term planning. The GDP projection of 6.8-7.2% is realistic. Now, the banking committee must ensure this growth is inclusive and reaches the grassroots.
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Nikhil C
While the intent is good, I hope this committee has representation from actual customers and small bankers, not just industry veterans and bureaucrats. We need ground-level feedback to avoid another "one-size-fits-all" policy.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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