RBI to ensure mega bank mergers non-disruptive, central bank in discussion with govt: Shaktikanta Das

  • The critical issue is to ensure that the process of transition following the merger should be in the most non-disruptive manner, Das said

  • Last month, the government had announced creation of four large state-run banks by merging ten of them

  • The move will take down the number of total state-owned banks to 12 from the 19 this April

Mumbai:  The Reserve Bank of India (RBI) is in discussions with the government to ensure that the mega bank merger process is carried out in a non-disruptive, governor Shatikanta Das said on Friday.

The critical issue is to ensure that the process of transition following the merger should be in the most non-disruptive manner, he said.

 RBI to ensure mega bank mergers non-disruptive, central bank in discussion with govt: Shaktikanta Das

RBI governor Shaktikanta Das. Image courtesy: PIB

Last month, the government had announced the creation of four large state-run banks by merging ten of them. The move will take down the number of total state-owned banks to 12 from the 19 this April.

"This is an issue which is also being discussed between the government and the RBI so as to ensure that the entire process of transition is non-disruptive," Das said at an India Today event.

The governor said the transition has to be non-disruptive in terms of credit disbursements, loan repayments, loan collections and all other functions of banking should not be affected.

Of the 10 banks getting merged, only a few of them have so far recieved the board mandate and none of them have moved the RBI seeking approvals.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .

Updated Date: Sep 20, 2019 18:51:48 IST