Budget 2026: High-Level Committee To Review Banking System To Support Citizens, Small Businesses

In the Union Budget 2026, Finance Minister Nirmala Sitharaman turned the spotlight on the banking sector - an institution that quietly touches everyday life, from salary credits and home loans to small business finance and pensions. By proposing a high-level committee to review India's banking system, the government signalled that banks must evolve with the changing needs of ordinary citizens and a growing economy under the Viksit Bharat vision.

For most Indians, banks are not abstract institutions. They decide how easily a family can get a home loan, whether a shopkeeper can access working capital, or how quickly farmers and students receive credit. Sitharaman said the proposed review will examine how banks function on a daily basis, their efficiency, and whether they are strong enough to support future growth without risking depositors' money.

The committee is expected to assess bank capacity, service delivery and risk management, with the aim of making the system more responsive to a larger, modern economy. A stronger banking sector, the government believes, will mean smoother credit flow, safer savings and better access to finance for households and businesses alike.

Alongside this, Sitharaman also proposed restructuring Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), which fund electricity and rural power projects. For citizens, this translates into more reliable power supply and faster infrastructure development.

Together, these Budget 2026 proposals underline a simple message: a resilient banking system is not just about balance sheets - it is about making everyday life easier and more secure for millions of Indians.