Budget 2026: Govt Announces High-Level Banking Review Committee Under Viksit Bharat Vision

The Union Budget 2026 has tabled proposals for review and reform of the banking sector under the Viksit Bharat framework. In her Budget Speech, Union Minister of Finance Nirmala Sitharaman said that Indian banks are functioning with a strong balance sheet, high profitability, enhanced quality of assets, and coverage of up to more than 98 per cent of villages across the country.

The government has now proposed to set up a high-level committee on banking for Viksit Bharat. This committee will conduct a detailed review of the banking sector to test its structure, inclusion commitment, efficiency and resilience, she said. The committee will also focus on aligning the sector with the economic priorities of India while ensuring financial stability, inclusion and consumer protection, she added.

High Level Committee On Banking

The suggested committee will study the ability of banks to meet the future credit requirements and foster the growth of the economy. It will also examine governance standards and risk management practices in view of changing financial and technological conditions. 

The committee will also guide reforms that would ensure the sector can function efficiently while providing widespread financial access.

Non-Banking Financial Companies

Budget 2026 has also addressed the reforms regarding non-banking financial companies (NBFCs). The vision under Viksit Bharat comprises targets for credit disbursement and use of technology for improved operational efficiency. 

To give a boost to public sector NBFCs, the budget has proposed restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). These steps are aimed at improving their ability to offer credit back up to the power and infrastructure sectors, respectively.

Financial Stability And Inclusion

She said there have also been discussions on measures to protect depositors and ensure consumer protection in banking operations along with the need for the expansion of financial services to underserved areas, both rural and semi-urban. The committee on banking is expected to make recommendations on improvement in the delivery of credit, governance, and operational efficiency while ensuring stability across the financial system, Sitharaman said.

The announcements in Union Budget 2026 centre around institutional strengthening, operational efficiency, and the use of technology, both in banks and NBFCs. Also, reforms will not cease with efforts to extend banking coverage and financial services to all parts of the country.