India: Gov pushes bank mergers

The Indian government has asked the Reserve Bank of India (RBI) to examine the possibility of merging the public sector banks (PSBs).

“Since various approaches involving varying processes are possible with regard to synergy/consolidation amongst PSBs, Government has requested the RBI for views as well as suggestions regarding specific possible combinations to achieve scale and synergy for appropriate consideration,” PTI reported citing Minister of State for Finance Shiv Pratap Shukla’s written reply to the Rajya Sabha (upper house of Parliament).

However, the reply also stated that there is no fixed timeline for such a merger.

The parliamentary committee is also working towards pushing for better governance standards at PSBs. It will likely submit a report on reforms in banking in a month.

Finance Minister Piyush Goyal last month said the government believes power is already available with the RBI. Still, the government is open to giving more power to the central bank if it is required to regulate and supervise PSBs better, he added.

Full Content: India Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.