Banking and finance is proposed to have a new committee to oversee and review the overall sector to forecast and evaluate the measures required to continue reform-led growth, finance minister Nirmala Sitharaman said during her Union Budget 2026 speech on Sunday. Highlighting that 98% of the country’s villages have access to banking services, Sitharaman said a high-level committee on banking for ‘Viksit Bharat’ will comprehensively review the sector and align it with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection. Further, the proposal outlined a vision for non-banking financial companies (NBFCs), with clear targets for credit disbursement and technology adoption. As a first step to achieve scale and improve efficiency in public sector NBFCs, Sitharaman said the government plans to restructure the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). Besides, Sitharaman also proposed a comprehensive review of the Foreign Exchange Management (Non-debt Instruments) Rules to create a more contemporary, user-friendly framework for foreign investments, consistent with India’s evolving economic priorities.” Previously, the central bank notified the amended Foreign Exchange Management Regulations in 2024, aimed at simplifying the process and clearing the ambiguity among authorised dealer banks regarding opening of foreign currency bank accounts… Read MoreInc42 Media
