Alternative mechanism for PSB mergers
Setting the stage for more mergers, the Union Cabinet last month approved an alternative mechanism to oversee proposals of amalgamation of public sector banks (PSBs). "The proposals received from banks for in-principle approval to formulate schemes of amalgamation shall be placed before the alternative mechanism," said Finance Minister Arun Jaitley. He added that the decision would be based only on commercial consideration by the boards of the banks involved. The alternative mechanism will include a panel of ministers, whose members will be decided by the prime minister.