Government panel to oversee PSB mergers

Q.  Government has constituted a ministerial panel to oversee merger proposals of which banks in Nov 2017?
- Published on 01 Nov 17

a. State owned banks
b. PSB
c. PSU banks
d. Only a and c
e. All of the above

ANSWER: All of the above
 
Government panel to oversee PSB mergersMoving ahead with reforms in the public sector banking space, the government has constituted a ministerial panel headed by Finance Minister Arun Jaitley that will oversee merger proposals of state-owned banks.

The other members of the panel include Railway and Coal Minister Piyush Goyal and Defence Minister Nirmala Sitharaman.

While announcing the unprecedented INR 2.11 lakh crore capital infusion roadmap for the public sector banks (PSBs) last week, Jaitley indicated this will be accompanied by series of banking reforms over the next few months.

The constitution of Alternative Mechanism (AM) is a movement in that direction.

The Cabinet in August had decided to set up an Alternative Mechanism to fast-track consolidation among public sector banks to create strong lenders.

The move to create large banks aims at meeting the credit needs of the growing Indian economy and building capacity in the PSB space to raise resources without dependence on the state exchequer.

The mechanism will oversee the proposals coming from boards of PSBs for consolidation.

The decision to set up such a mechanism follows State Bank of India merging its five associate banks, as also the Bharatiya Mahila Bank, with itself.

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