Union Budget 2026: Sitharaman Proposes High-Level Panel on 'Banking for Viksit Bharat' to Boost NBFC Efficiency
Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 in Parliament on Sunday, announced a significant initiative aimed at transforming the financial landscape of India. She proposed the establishment of a high-level committee focused on 'Banking for Viksit Bharat', a move designed to recommend comprehensive reforms to enhance efficiency across the banking system, with particular emphasis on non-banking financial companies (NBFCs).
Key Announcements and Objectives
Addressing the Parliament, FM Sitharaman outlined the committee's primary goal: to drive improvements in the banking sector, ensuring it supports India's vision of becoming a developed nation. The panel is expected to focus on several critical areas:
- Enhancing operational efficiency and transparency in NBFCs.
- Strengthening regulatory frameworks to foster innovation and growth.
- Promoting financial inclusion and accessibility for all segments of society.
- Aligning banking practices with sustainable development goals.
Current Banking Sector Performance
In her speech, Sitharaman highlighted the robust health of the Indian banking sector, which currently boasts strong balance sheets and has achieved record profitability levels. She attributed this positive trend to the sustained reforms implemented over the past decade, which have bolstered the sector's resilience and competitiveness on a global scale.
Socio-Economic Impact and Inclusive Growth
Beyond financial metrics, the Finance Minister underscored the broader socio-economic gains resulting from these reforms. She noted that approximately 25 crore individuals have been lifted out of multidimensional poverty during this period, demonstrating the government's commitment to inclusive growth. This achievement aligns with the 'Banking for Viksit Bharat' initiative, which aims to integrate financial sector strengthening with equitable economic development.
Implications for the Future
The proposed high-level committee is poised to play a pivotal role in shaping the future of India's banking and financial services. By focusing on NBFC efficiency and broader systemic reforms, it seeks to create a more dynamic and responsive financial ecosystem that can drive economic progress and support the nation's aspirations for a Viksit Bharat (Developed India).
As the details of the committee's composition and mandate are expected to be unveiled in the coming weeks, stakeholders across the industry are keenly awaiting further announcements that will define the trajectory of banking reforms in the years ahead.
