The government has constituted a ministerial panel headed by Finance Minister Arun Jaitley to 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.
In a tweet, Financial Services Secretary Rajiv Kumar said that the government is working on banking reforms and constituted an Alternative Mechanism for Public Sector Banks, PSB consolidation.
Last week, Mr Jaitley had announced 2.11 lakh crore rupees capital infusion roadmap for the public sector banks. The Union Cabinet 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.