As India prepares for its next phase of economic growth, the government is moving to strengthen the banking system to support the country’s long-term development goals.
Finance Minister Nirmala Sitharaman has announced that the government will soon constitute a “High-Level Committee on Banking for Viksit Bharat.” The committee will focus on creating a clear roadmap to develop large and capable lenders that can meet the financial needs of a developed India.
Sitharaman underlined the importance of the initiative, saying it is essential to ensure banking services are strong and accessible enough to fund India’s journey towards becoming a developed nation.
The proposed panel will be tasked with recommending steps to further strengthen the banking system and improve access to credit. These measures are expected to play a key role in supporting economic expansion and long-term growth.
“We want the committee to tell us what kind of things we need to do so that banking is made available for funding Viksit Bharat,” Sitharaman said.
When asked about the timeline, the Finance Minister said the committee would be formed “at the earliest.” She had first announced the plan during her Budget speech on February 1.
“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 had said in her Budget address.
Alongside the committee proposal, the Budget also outlined steps to improve efficiency in public sector non-banking financial companies. This includes a plan to restructure the Power Finance Corporation and the Rural Electrification Corporation.
Both entities play a crucial role in financing power generation, transmission, and distribution projects across the country. Following the Budget announcement, the board of the Power Finance Corporation last week approved the in-principle merger with REC Limited.
The government views these measures as part of a broader effort to strengthen financial institutions and align them with India’s long-term development ambitions.
Also read: Viksit Workforce for a Viksit Bharat
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