Kolkata, Feb 2 (PTI) Bandhan Bank founder and Group Chairman Chandra Shekhar Ghosh on Monday said the Union Budget's proposal to set up a High Level Committee on Banking for Viksit Bharat is a significant step towards aligning the banking sector with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection.

In the budget, Finance Minister Nirmala Sitharaman proposed formation of the panel to comprehensively review the banking sector, and align it with India's next phase of growth, while safeguarding financial stability, inclusion and consumer protection.

She also outlined a proposal for NBFCs with clear targets for credit disbursement and technology adoption, and suggested the restructuring of public sector NBFCs such as Power Finance Corporation and Rural Electrification Corporation to improve scale and efficiency.

Ghosh said the proposed committee may play a key role in shaping the future regulatory and policy framework for banks, particularly those engaged in micro-credit and inclusion-led lending.

"If we want to reach the goal of Viksit Bharat, the micro-credit industry will have to contribute more, particularly in helping people at the bottom of the pyramid become self-reliant," he told PTI.

Ghosh said the recommendations of the proposed banking committee would have a positive spillover for lenders operating in the microfinance space.

"Hope that when this review is finalised, it can help microfinance institutions and those lending to this segment. Even banks will get more benefit from it," he added.

On the NBFC sector, Ghosh referred to the Budget's articulation of a clear vision for NBFCs for Viksit Bharat with defined targets for credit disbursement and technology adoption, saying it provides long-term direction for the segment.

Ghosh said policy clarity and stability remain important for both banks and NBFCs to ensure uninterrupted credit flow to borrowers.

"The system and processes should be simplified in a way that reduces risk for borrowers. They should not feel harassed, and funding support should not stop abruptly," he said.

Industry experts said the proposed measures could lead to structural improvements across the financial sector, strengthening the role of banks and NBFCs in supporting inclusive and sustainable economic growth. PTI BSM NN

High Level banking review to align banks and NBFCs with growth while prioritising inclusion, consumer protection and borrower safeguards. A proposed High Level Committee on Banking would review and realign regulatory and policy frameworks to balance growth with financial stability, inclusion, and consumer protection, with attention to banks engaged in micro credit. The Budget vision for NBFCs sets targets for credit disbursement and technology adoption and contemplates restructuring public sector NBFCs to improve scale and efficiency, while calling for policy clarity, simplified processes, borrower safeguards, and stable funding flows to support inclusive credit delivery.