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Bank Promotion Exam Guide

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Module: General Practice

Q158: The Union Budget 2026-27 announced the formation of a "High-Level Committee on Banking" (HLC-B). What is the specific mandate of this committee as stated in the budget speech?

A
To oversee the merger of all Regional Rural Banks (RRBs) into a single national entity.
B
To comprehensively review the banking sector and suggest legislative changes to align it with the "Viksit Bharat" (Developed India) goals.
C
To investigate the asset quality of Non-Banking Financial Companies (NBFCs) exclusively.
D
To manage the privatization process of the remaining two Public Sector Banks.
✅ Correct Answer: B
The committee is tasked with a comprehensive review of the banking sector to align it with India's future growth ("Viksit Bharat"). The "High-Level Committee on Banking" is an expert body proposed to update the regulatory architecture of the financial sector.
The Finance Minister noted that the banking sector has reached historic highs in profitability and asset quality.
The committee will now look at "Next Gen" reforms, including reviewing the Banking Regulation Act and RBI Act to support digital banking, enhance consumer protection, and ensure the sector can fund the massive investment needs of a developed economy.