Budget 2026-27: Centre Set Up High-Level Committee To Review The Banking Sector

Presenting the Union Budget 2026 in the Lok Sabha on Sunday, Finance Minister Nirmala Sitharaman announced a series of measures for the financial sector, including the setting up of a high-level committee to review banking, restructuring of key public sector NBFCs, and reforms to foreign investment and bond market frameworks.

The Finance Minister said the Indian banking sector is currently marked by strong balance sheets, historic highs in profitability, improved asset quality and coverage, and outreach to more than 98 percent of villages across 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.

She announced the setting up of a High-Level Committee on Banking for Viksit Bharat. “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.

On reforms for non-banking financial companies, she said a vision for NBFCs has been laid out with clear targets for credit disbursement and technology adoption to achieve scale and improve efficiency in the public sector. As a first step, she announced that the Power Finance Corporation and the Rural Electrification Corporation would be restructured.