Union Cabinet approves plans to merge some state-run banks

  • Union Cabinet approves plans to merge some state-run banks
24-08-2017 | Pratidin Bureau. |

Despite protest of the bank employees around the country, the Union Cabinet has approved the framework for merging state-owned banks. The government on Wednesday decided to set up an Alternative Mechanism to oversee the proposals for consolidation of public sector banks (PSBs) with a view to creating fewer but stronger lenders.

“An alternative mechanism will be brought up to give in-principle approval to the proposals of banks to prepare schemes of amalgamation, statement Ministry of Finance. A panel of ministers will look after the entire process of merger of PSU banks,” said Finance Minister Arun Jaitley, addressing the press after the cabinet meeting.

The Cabinet decision came shortly after State Bank of India (SBI) merged with five of its other associate banks and Bharatiya Mahila Bank. The SBI hence formed itself as the 45th largest bank in the world. The SBI is also rationalising branches and re-deploying staff to cut costs.

The Union cabinet also took the decision to increase the ‘creamy layer’ ceiling for the OBC category to Rs. 8 lakh per annum from the existing Rs. 6 lakh for central government jobs. This means those in the OBC category earning up to Rs. 8 lakh per annum would now get the reservation benefits. The Cabinet also approved setting up of a commission to examine the sub categorisation of backward communities in the central list to ensure that the benefits extended to OBCs reach all the communities.

Tags : Union Cabinet state-run banks SBI Arun Jaitley

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