High-level committee on banking proposed in Union Budget 2026

New Delhi: Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026-27 in Parliament, announced the setting up of a “High-Level Committee on Banking for Viksit Bharat” to review the sector comprehensively 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,” Sitharaman said during her 90-minute budget speech.

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The finance minister highlighted the robustness of India’s banking sector, noting that it now boasts strong balance sheets, record profitability, improved asset quality, and coverage exceeding 98 per cent of villages nationwide.

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“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 added.

To enhance scale and efficiency in Public Sector Non-Banking Financial Companies (NBFCs), Sitharaman proposed restructuring the Power Finance Corporation and Rural Electrification Corporation as an initial step.

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

The Finance Minister also introduced a set of indirect tax measures aimed at simplifying the tariff structure, supporting domestic manufacturing, promoting export competitiveness, and addressing duty inversion.

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Sitharaman’s presentation marked her ninth consecutive Union Budget, a historic milestone in Indian parliamentary history.

Ahead of the budget, the Finance Minister tabled the Economic Survey of India 2025-26 on Thursday, following the longstanding tradition of reviewing the state of the economy before detailing future fiscal plans. The survey provided a data-backed assessment of the economy over the past year and outlined a roadmap for future policy direction.

According to the survey, India’s real GDP growth for 2026-27 is projected at 6.8-7.2 per cent, reflecting sustained medium-term growth potential despite a challenging global environment.