Prime Minister Narendra Modi (Photo: Arun Sharma/PTI) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Prime Minister’s Office is set to review proposals to overhaul public sector banks (PSBs) ahead of the 2026–27 Budget. The reform blueprint—crafted by the Department of Financial Services—includes a fresh round of consolidation, enhanced board autonomy, and a phased hike in the foreign direct investment (FDI) cap. Privatisation of select PSBs, first announced in the 2021–22 Budget, may also resurface as part of the government’s push to create globally competitive Indian banks, a Financial Express report said.

The report added that the government may also be looking into phased plan to raise the FDI limit to 49% from 20% at present. Further, privatisation, announced in

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