Govt to set up alternative mechanism for banks' consolidation: FM Arun Jaitley
The Alternative Mechanism will be decided by Prime Minister Narendra Modi, Finance Minister Arun Jaitley said after the Union Cabinet meeting
New Delhi: 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.
The Alternative Mechanism will be decided by Prime Minister Narendra Modi, Finance Minister Arun Jaitley said after the Union Cabinet meeting.
The Cabinet gave in-principle nod to the constitution of the mechanism which will clear proposals of banks for mergers and amalgamation, he said.
The government aims to create strong and competitive banks in public sector space to meet the credit needs of the growing economy, absorb shocks and have the capacity to raise resources without depending on the state exchequer, he said.
The decision regarding creating strong and competitive banks would be solely based on commercial considerations, he added.
After the in-principle approval, Jaitley said, the banks will take steps in accordance with law and Sebi's requirements.
The final scheme will be notified by the central government in consultation with the Reserve Bank.
Congratulating the people of Telangana, the prime minister said that the temple showcases the outstanding craftsmanship of great Kakatiya dynasty
Modi's visit to his Lok Sabha constituency in UP comes as political activities gather pace in the BJP-ruled state which goes to Assembly polls early next year
Modi noted that on the coming 15 August, India will enter its 75th year of Independence and highlighted that Amrit Mahotsav is being celebrated throughout the country to mark that year