Budget 2026: The government may propose the Banking Governance Bill on Feb. 1, 2026 in the Union Budget 2026, sources told NDTV Profit. The move aims to make PSU banks professional, competitive, and tech-driven. The bill will also likely ensure PSU banks can finance large projects and not just safeguard public savings. The Bill may look into better board composition, clearer accountability and could also address concerns over pay and talent gaps between public sector banks (PSBs) and private banks, as per sources.
The government wants PSBs to be more competitive by Vision 2047, Separately, the government may consider raising the FDI limit in PSBs from the current 20%. According to reports, the Bill is still being finalised and may take another three to four months before it is ready for introduction in Parliament. However, its formal announcement in the Budget would signal the government's intent to push through one of the most significant structural reforms in the banking sector in years.
ALSO READ: Budget 2026: CEA Nageswaran Presents India's Economic Survey - Read Full Document
Budget 2026 to be presented on Feb. 1
The Budget Session of Parliament starts on Jan. 28 and continues till April 2. Finance Minister Nirmala Sitharaman will present the Union Budget 2026-27 on an unorthodox day of the week, being Sunday, Feb. 1, 2026. The Union Budget is set to be presented on a Sunday for the first time in decades. The Economic Survey was tabled yesterday on Jan. 29, 2026.
India's Economic Survey said that the country must build "strategic indispensability" as it heads into FY27, with global trade and capital flows now shaped by tariffs and economic statecraft. The survey projects real gross domestic product growth of 6.8% to 7.2% in FY27, and puts FY26 growth at 7.4% in the first advance estimates, with domestic demand driving activity.
India's macro position remains strong, it said, adding that, howver, the external setting has changed. India's performance "has collided with a global system that no longer rewards macroeconomic success with currency stability, capital inflows, or strategic insulation," Chief Economic Adviser V Anantha Nageswaran wrote.
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