Experts expect the panel to explore innovative deposit mobilisation strategies and ways to enhance the sector’s role in economic growth while safeguarding financial stability, inclusion, and consumer protection.
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Union Finance Minister Nirmala Sitharaman made the announcement, emphasising the Indian banking sector’s strong balance sheets, historic profitability highs, improved asset quality, and coverage of over 98% of the country’s villages.
“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.
Expert outlook
Karthik Srinivasan, Senior Vice President & Group Head, ICRA, said, given that the banking landscape has changed quite a bit over the last decade or so, the Government may want to know what needs to change in the financial sector.
“Banks and NBFCs have to play a much longer, much greater role in the economy. So, we need banks and other lending institutions to be in the best of health…There could be a combination of many things the committee could look at, including some consolidation, changes in regulations or ownership pattern,” he said.
Deposit mobilisation challenge
Referring to the challenges banks face in deposit mobilisation, Karthik said the committee could make suggestions for exploring other liabilities.
Published on February 1, 2026
