Overview
- Finance Minister Nirmala Sitharaman said the government will constitute the High-Level Committee on Banking for Viksit Bharat at the earliest.
- The panel is tasked with reviewing the banking sector and recommending reforms to build large, globally competitive lenders capable of meeting development funding needs.
- Budget documents framed the review around safeguarding financial stability, inclusion and consumer protection alongside scaling up capacity.
- In a parallel consolidation step, the PFC board last week gave in-principle approval to merge REC Limited into Power Finance Corporation.
- REC has been a PFC subsidiary since a 2019 deal in which PFC acquired a 52.63% stake for about Rs 14,500 crore, and both lenders finance power sector projects.