The Government of India has set up the High Level Committee on Banking for Viksit Bharat, with former Central Vigilance Commissioner Suresh N. Patel as Chairman. Announced by the Ministry of Finance on 30 October 2026, the four-member panel has six months to recommend structural, regulatory and legislative reforms, including a roadmap for AI and digital innovation in banks.
Finance Minister Nirmala Sitharaman had first proposed the committee in her Union Budget 2026-27 speech on 1 February. Its brief is to review the banking sector and suggest the changes needed to make it globally competitive, financially inclusive and resilient by 2047.
Who is on the High Level Committee on Banking
- Chairman: Suresh N. Patel, former Central Vigilance Commissioner
- Member: Shirish Chandra Murmu, Deputy Governor, Reserve Bank of India
- Member: Padmaja Chunduru, former MD and CEO, Indian Bank
- Member: N. S. Vishwanathan, former Deputy Governor, Reserve Bank of India
- Member Secretary: Joint Secretary (Banking), Department of Financial Services
What the panel will review
According to the Ministry of Finance, the committee’s terms of reference cover seven areas:
- Benchmarking banking practices and prudential norms against global best practice, and a roadmap for globally competitive Indian banks
- Reviewing regulatory and legal frameworks for banks, including Regional Rural Banks and cooperative banks, to improve ease of doing banking
- Assessing long-term capital needs of banks, development finance institutions and NBFCs, and how to fund credit growth
- Examining gaps in the cost of capital for business and options to lift private investment
- A roadmap for AI and digital innovation in banking, with safeguards against cyber risks, plus a talent and capacity-building strategy
- Reviewing the Priority Sector Lending framework and the Lead Bank Scheme for data-driven, inclusive credit delivery
- Any other matter the government refers to it
Why the AI and cyber mandate matters for banks
The technology brief comes as lenders scale up AI quickly. Indian banks recently reported gains of up to 50% in productivity and costs from AI deployments across collections, servicing and corporate banking. At the same time, a run of incidents has led the RBI to tighten cyber checks on banks and scrutinise fintech and NBFC API links.
A government-backed roadmap could set common direction on how banks adopt AI, manage model and cyber risk, and reskill staff, areas where practice still varies widely between large private lenders, public sector banks and smaller institutions.
Scale, capital and inclusion
The push for “globally competitive banks” reflects how far Indian lenders trail global peers in size. As reported by The Indian Express, citing S&P Global Market Intelligence, State Bank of India ranks 45th among the world’s largest banks and HDFC Bank 76th, the only two Indian lenders in the top 100.
The committee also arrives amid strong foreign interest in Indian finance, including the Cabinet’s approval in October of the sale of a 60.7% stake in IDBI Bank to Fairfax Financial Holdings for ₹52,878 crore. On inclusion, its review of priority sector rules follows data showing private banks trailing PSU lenders on Mudra, SVANidhi and Vishwakarma targets in H1 FY27.
Key takeaways
- Suresh N. Patel will chair the High Level Committee on Banking for Viksit Bharat, constituted on 30 October 2026.
- RBI Deputy Governor Shirish Chandra Murmu, Padmaja Chunduru and N. S. Vishwanathan are members; the panel has six months.
- Its mandate includes an AI and digital innovation roadmap for banks with cyber safeguards, capital needs, and a review of priority sector lending.
FAQ
Who heads the High Level Committee on Banking for Viksit Bharat?
Former Central Vigilance Commissioner Suresh N. Patel is the Chairman of the committee.
How long does the committee have to submit its report?
The committee’s tenure is six months from its constitution on 30 October 2026.
Does the committee cover technology in banking?
Yes. One term of reference asks it to prepare a roadmap for AI and digital innovation in banks, with safeguards against cyber risks and a plan for a future-ready workforce.
Source: Ministry of Finance release via PIB, 30 October 2026.
Featured image: Finance Minister Nirmala Sitharaman at Parliament for the Union Budget, February 2025. Photo: Government of India / Wikimedia Commons (GODL-India).
