The speed of the integration of the government banks, the approval of the mill cabinet

The central government has speeded up the pace of the biggest reform process in the public sector banks. A proposal to start the process of mergers and acquisitions in 21 government banks of the country got Cabinet approval on Wednesday. According to government sources, the number of these banks will be reduced to 10 to 12 in the first phase. But in the long run, they will have to reduce their number and close to 7.

                                                   

The central government is contemplating the merger of banks in the government sector for the last decade and a half. During this time many committees were formed but could never be executed. Most Indian Bank Union had prepared its roadmap in 2003. After that, the UPA Government, after the then finance secretary RS Gujral, formed a high-level committee, suggested all the banks to make seven big banks. But for all the reasons, they could not move forward. The present NDA government had completed the process of merger of its five subsidiaries and another Indian woman bank with SBI and it was informed that this issue will not be delayed for longer days.