The government has set up a high-level committee, led by former CVC Suresh N Patel, to recommend reforms and make India's banking sector globally competitive
Only 19% of MSME credit demand was met through formal sources in 2020-21, according to NITI Aayog. Bridging this gap must be a key priority
The committee must assess whether India needs its current number of public-sector banks and examine the case for a more efficient banking structure
Unexplained leadership exits and governance concerns at large banks underline the need for transparent regulations and stronger institutional accountability
Priority-sector lending norms and statutory liquidity requirements need a fresh assessment. Banks should have greater flexibility to serve diverse credit needs
Banks alone cannot finance a growing economy
India needs a holistic review of its financial system, including diverse institutions and funding instruments, to support its 2047 ambitions