In New Delhi, M Nagaraju, the Financial Services Secretary of India, revealed plans for a High-Level Committee on Banking for Viksit Bharat, which was proposed in the 2026 Budget. This committee will focus on addressing the balance sheet constraints of public sector banks, enabling them to leverage their capital more effectively. Nagaraju emphasized the need for a banking sector that is inclusive and aligned with India's growth objectives while maintaining financial stability.

He highlighted the lack of a middle-tier corporate bond market in India, where 90-95% of bond issuances come from companies rated AA or above. Nagaraju stressed that improving access to long-term capital for various businesses, especially underserved ones, is essential for economic growth. He called for coordinated actions among regulators and the government to deepen the bond market and ensure capital reaches last-mile borrowers at competitive rates.

Furthermore, he advocated for better-designed regulations to oversee financial markets, citing India's past experiences with cooperative banks and non-banking financial companies as cautionary tales against lax oversight.