High-level committee will soon be formed for banking reforms: Finance Minister said- Banks have the lowest NPA, right time for reforms.

The government will soon announce the members and composition of its high-level committee for the banking sector. Finance Minister Nirmala Sitharaman made this announcement on the first day of the two-day ‘PSB Confluence 2026’ held in New Delhi on Monday.

According to a senior source in the Finance Ministry, this committee can be formed this month (March 2026).

The committee’s proposal was placed in the budget 2026-27

The proposal to constitute this high-level committee was first made in the Union Budget 2026-27. Finance Minister Sitharaman had announced a plan to form a high-level committee on banking for a developed India.

Its main objective is to review and adapt the banking sector in line with the economic development goals of the country. However, this committee is yet to be formally constituted.

Focus will be on developed India target of 2047

The Finance Minister made it clear that this panel will focus on the role of banks towards making India a developed nation (Developed India) by 2047. “The committee will review the role of banks towards a developed India. The year 2047 is not far away,” he said during the event.

NPA at lowest level, right time to implement reforms

Referring to the reforms and asset quality in the country’s banking sector, the Finance Minister expressed the need for new changes. Sitharaman said, “Non-performing assets (NPAs) in the banking sector are at an all-time low. Indian banks are now in a better position than ever to adopt new banking reforms.”

As soon as the report comes, work on the recommendations will be done quickly.

Nirmala Sitharaman assured that after the submission of the committee’s report, the government will not delay in implementing the suggested recommendations. “As soon as the committee submits its report, we will take swift action on its recommendations,” he said.

Record profit of ₹1.98 lakh crore of public sector banks

The financial health of the country’s public sector banks is continuously improving. Public sector banks (PSBs) have collectively reported a record net profit of more than Rs 1.98 lakh crore in the financial year 2025-26 (FY26). On the basis of this strong financial position, the government is now taking steps towards major banking reforms.

What is the vision of ‘Developed India 2047’?

The goal of the Government of India is to make India a developed nation by the completion of 100 years of the country’s independence (2047). Achieving this vision requires massive reforms in infrastructure, economic development and the banking system.

What are NPA?

Non-Performing Assets (NPA) are those loans or advances whose interest or principal is not returned within the stipulated time (usually 90 days). Low NPA of banks is considered a sign of their strong financial position.

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