Finance Minister Nirmala Sitharaman on Monday, 17 August 2026 announced that the government will shortly reveal the composition of a high-powered committee tasked with charting the banking sector's role in steering India toward a developed economy by 2047. The disclosure came at the inauguration of a two-day conclave of heads of public sector banks and financial institutions in New Delhi.

What the Committee Will Do

'Once the committee gives its report, we will move fast on the recommendations,' Sitharaman said, signalling the government's intent to act swiftly once the panel submits its findings. The committee was first proposed by Sitharaman during the presentation of the Union Budget 2026-27, with a mandate to review the banking sector's alignment with India's long-term growth goals.

'The committee will look at the role of banks towards Viksit Bharat, as 2047 is not too far away — as we are in 2026, so less than 20 years is what we have before us,' the Finance Minister remarked, underscoring the urgency of the exercise.

Banks Enter Reforms From a Position of Strength

Sitharaman highlighted the banking sector's markedly improved asset quality as providing an ideal window for pushing ahead with structural reforms. She urged public sector banks to leverage their strengthened balance sheets to support the next phase of economic growth and to prepare for a financial system aligned with the Viksit Bharat 2047 vision.

Department of Financial Services Secretary Sanjay Lohiya put numbers to that improvement: gross non-performing assets (NPAs) have declined from a peak of 14.6 per cent in March 2018 to a record low of 1.93 per cent in March 2026, while net NPAs fell from 8 per cent to 2.39 per cent over the same period. 'With NPAs at the lowest ever Indian banking has seen, there cannot be a better position of strength with which banks can take on reforms,' Sitharaman said.

Focus on Youth, Deposits, and Emerging Sectors

The Finance Minister called on banks to sharpen their focus on India's young population, noting that 29 per cent of Indians fall in the 15–29 age group. She said banks must expand access to financial services for this cohort — covering education loans, entrepreneurship finance, and investment products.

Lohiya flagged deposit mobilisation as a pressing priority as household savings preferences shift, urging banks to strengthen their deposit base through better service, product innovation, and sustained customer relationships. He also identified financing opportunities in global capability centres, agriculture and horticulture value chains, and priority-sector lending as areas where banks must sharpen their competitiveness.

What Happens Next

Sitharaman said ideas emerging from banking leadership at the conclave could provide substantive inputs to the committee and help the government move rapidly on its recommendations. The sector, she said, should be ready 'to rev up the Indian economy' once the committee delivers its report. The formal announcement of the panel's composition is expected shortly, with the government indicating it will act without delay once recommendations are in hand.