India to review banking sector with new high-level committee

At the PSB Confluence 2026, Finance Minister Nirmala Sitharaman announced that the Indian government will soon establish a high-level committee to review the banking sector. This committee, aimed at supporting the ‘Viksit Bharat’ vision for a developed economy by 2047, will provide recommendations to align the financial system with long-term national growth goals.

Sitharaman noted that the banking sector is in a position of strength to undergo these reforms, citing that non-performing assets (NPAs) have reached record lows. Specifically, gross NPAs fell to 1.93% as of March 2026. She urged public sector banks (PSBs) to leverage their strengthened balance sheets to support infrastructure and economic expansion.

To address demographic shifts, the Finance Minister proposed a month-long ‘Banking for Youth’ campaign starting October 2, 2026. The initiative aims to engage citizens aged 16 and above through colleges, universities, and dedicated ‘Yuva Kiosks’ at branches. The goal is to build early relationships with young Indians and integrate them into the formal banking system through intuitive, digital-first services.