Experts expect the panel to explore innovative deposit mobilization strategies and ways to enhance the sector’s role in economic growth while ensuring financial stability, inclusion and consumer protection. | Photo credit:
Union Finance Minister Nirmala Sitharaman made the announcement, highlighting the Indian banking sector’s strong balance sheets, historic profitability, improved asset quality and coverage of over 98% of the country’s villages.
“At this time, we are well positioned to futuristically evaluate the measures required to continue on the path of reform-led growth of this sector,” she said.
Expert perspective
Karthik Srinivasan, Senior Vice President & Group Head, ICRA, said that given that the banking landscape has changed quite a bit in the last decade, the government may want to know what needs to change in the financial sector.
“Banks and NBFCs have to play a much longer, much bigger role in the economy. So we need banks and other credit institutions to be in the best of health… There could be a combination of many things that the committee could look at, including some consolidation, regulatory changes or ownership pattern,” he said.
Deposit mobilization challenge
Referring to the challenges faced by banks in mobilizing deposits, Karthik said the committee could make suggestions for examining other liabilities.
Published on February 1, 2026
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