A review promised in the budget

India's finance ministry said on Friday 30 October that it had set up a high-level committee to review the banking sector and help it better support the country's economic growth while improving its global competitiveness. Finance Minister Nirmala Sitharaman had promised the committee in India's annual budget in February.

The committee will assess present banking practices, review existing regulatory frameworks and evaluate long-term capital requirements for banks, according to the ministry's press release. It will also suggest reforms to ease banking operations and propose policy changes to boost private investment in banks.

AI, cyber risks and talent on the agenda

The panel will draw a roadmap for AI and digital innovation in banking while safeguarding against cyber risks, and suggest a talent acquisition strategy for the sector. The combination reflects two pressures on Indian banks at once: the push to modernise services and the need to defend them against fast-growing digital fraud.

The committee will be headed by former Central Vigilance Commissioner Suresh N Patel, and will include central bank deputy governor Shirish Chandra Murmu, former deputy central bank governor N S Vishwanathan and former Indian Bank chief executive Padmaja Chunduru. No deadline for its report was given in the reporting so far.

Sources: Reuters