Government asks RBI to identify banks for merger
The government has asked the Reserve Bank of India (RBI) to prepare a list of candidates for merger among 21 government banks as it seeks to strengthen a banking system laden with bad debt, people familiar with the matter said.
In a meeting this month, finance ministry officials also asked RBI to suggest a time frame for the consolidation, the people said, asking not be named as the information isn’t public.
The government bank merger move is aimed at creating fewer, better-capitalized lenders and improving regulatory oversight, they said.
(Source : Economic Times)