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GS3 · Banking

High Level Committee on Banking; PFC-REC to be restructured

1 min readMoney & Banking
Battle IAS current affairs title card: High Level Committee on Banking; PFC-REC to be restructured (GS3 · Banking, 1 February 2026)

What happened

  • The Budget proposes a High Level Committee on Banking for Viksit Bharat and a restructuring of PFC and REC [PIB].
  • A ₹100 crore incentive is offered for a single municipal bond issue above ₹1,000 crore [PIB].

Background

  • Individuals resident outside India will be allowed to invest in listed Indian equity through the portfolio route [PIB].

Why it matters

  • Municipal bonds are how cities can fund themselves; the incentive targets the size problem.

How to use this in Mains

GS-III Indian economy: mobilisation of resources, banking and inclusive growth

  1. As per PIB (2026-02-01): the Budget proposes a High Level Committee on Banking for Viksit Bharat and a restructuring of PFC and REC.
  2. Municipal bonds are how cities can fund themselves; the incentive targets the size problem.
Quotable data point

A ₹100 crore incentive is offered for a single municipal bond issue above ₹1,000 crore.

PIB: HLC on Banking, 1 Feb 2026

Exam angle

UPSC

Prelims: municipal bonds. · Mains: financing urban infrastructure.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Incentive for a municipal bond issue above ₹1,000 crore

Answer (c) & explanation

PIB.

Go deeper

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Official source: PIB: HLC on Banking, 1 Feb 2026

facts from cited sources only; faculty review pending