Budget 2026: FM proposes high-level committee to review banking sector

Presenting the Union Budget, Finance Minister Nirmala Sitharaman announced the government’s plan to set up a high-level committee to comprehensively review India’s banking sector, with the objective of improving its scale, efficiency, and readiness for future economic growth under the vision of Viksit Bharat.

Sitharaman said the proposed committee would examine the structure and functioning of the banking system and recommend measures to align it with India’s long-term development goals.

According to her, the review is intended to ensure that the banking sector is better equipped to support a growing and modern economy.

In addition to the banking review, Sitharaman announced that Power Finance Corporation (PFC) and Rural Electrification Corporation (REC)

— two key government-owned financial institutions in the power sector — are proposed to be restructured. She did not immediately provide details on the nature or timeline of the restructuring.

Both PFC and REC play a significant role in financing power generation, transmission, and rural electrification projects across the country.

This is a developing news

Catch LIVE updates on Budget here