Ministerial panel set up to supervise PSU bank mergers

NewsBharati    31-Oct-2017
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New Delhi, October 31: To supervise the merger proposals of the public sector unit (PSU) banks a ministerial panel has been constituted by the government which will be led by the Finance Minister Arun Jaitley along with the Railway Minister Piyush Goyal and Defense Minister Nirmala Sitharaman.

 

The Financial Services Secretary Rajiv Kumar said that the Government performing the actions consistently regarding the banking reforms and constitutes an alternative mechanism for Public Sector Banks (PSBs) consolidation.


On 24th October in a press conference, Jaitley had announced a capital infusion roadmap of Rs. 2.11 lakh crore rupees for the public sector banks. To fast-track consolidation, an Alternative Mechanism among public sector banks has been decided to set up by the government so that the strong lenders should be created. 

 
 
 
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 aim of merging the PSBs is that the resources should be raised for growing Indian economy which will build the capacity of the public sector banks without depending on the government treasury. This procedure will supervise recommendations from the boards of PSBs for making it stronger.