Financial Services Secretary M Nagaraju announced the formation of a High-Level Committee on Banking for Viksit Bharat, which is set to examine public sector banks' balance sheet constraints to enable better capital leverage. This initiative, proposed by Finance Minister Nirmala Sitharaman in her Budget speech on February 1, 2026, aims to enhance the banking sector's effectiveness, inclusivity, and alignment with India's growth objectives while maintaining financial stability. Nagaraju highlighted the necessity of developing India's corporate bond market, which currently relies heavily on top-rated companies, limiting access for others. He emphasized that a well-functioning bond market is crucial for providing companies with direct access to long-term capital, improving price discovery, and fostering competition. The committee will also focus on ensuring that capital reaches underserved borrowers, including small businesses and farmers, at competitive rates. Nagaraju called for better regulation of financial markets to prevent issues seen in sectors like co-operative banks and non-banking financial companies.