India's PMO to Spearhead Major Public Sector Bank Reforms: Privatization, FDI Hike on Agenda

Overview

The Prime Minister's Office (PMO) is set to convene a meeting to discuss significant reforms for India's public sector banks (PSBs) as the government's agenda gains momentum ahead of Budget 2026. Key proposals include the potential revival of privatizing two public lenders, bank consolidation, increasing Foreign Direct Investment (FDI) limits to 49 percent, granting more operational autonomy, and ensuring capital support for these institutions. The reforms aim to position two Indian banks among the world's top 20.