Merger rules ...

On the other hand some employees will lose their jobs after the merger as the two financial institutions will not be able to maintain overheads with same job descriptions.

“There will always be some discrepancies when it comes to salaries and benefits between the two companies. Other than the financial aspect, the main concern that every individual has is how it will affect them”, he said.

There are around 50,000 employees serving in 58 non-bank financial institutions, In addition there are over 10,000 suppliers.

The regulatory authority should consider this factor seriously before pruning the number of institutions to 20 as announced in the Central Bank 2014 road map.

The only way to effectively mitigate many of these issues is through effective, proactive and frequent communications with all key stake holders, he added.

At present many people go to finance companies to get loans as it is hassle free although their interest rate is high and they have over 50 such institutions to negotiate their loan, a businessman revealed.

He noted that with reduction of NBFIs a monopoly will be created and such institutions will tend to restrict their disbursement of loans like banks which have strict procedures and collateral systems.

“People will have to borrow money from rural and urban money lenders (Poli Mudalali) in future under the current set