Though termed Bank merger it being called as bank amalgamation. After the wave of economic liberalization, a committee under the chairmanship of MaidavoluNarasimham 13 th Governor of Reserve Bank of India RBI was constituted in and again in to recommend reforms required in banking sector. Difference between a merger and an amalgamation: Amalgamation is the combination of one or more companies into a new entity. An amalgamation is distinct from a merger because neither of the combining companies survives as a legal entity; a completely new entity is formed to house the combined assets and liabilities of both companies. Historical Background of Bank Consolidation in India: After the wave of economic liberalization, a committee under the chairmanship of MaidavoluNarasimham 13 th Governor of Reserve Bank of India RBI was constituted in and again in to recommend reforms required in banking sector.
[Banking] RRB Amendment Bill, Small Banks-Payment Banks, Kotak-ING Vysya Merger, NBFC Guidelines
Merger Of Banks | IAS Abhiyan
India will now have 12 Public Sector Banks from 27 in The merger of banks was announced under the Bank Consolidation plan among other major initiatives and steps to accelerate the economic growth of India. While addressing a press conference, FM Sitharaman mentioned that only six banks showcased profitability in the 4 th Quarter of However, in Quarter 1 of , 14 PSBs showcased growth and profit. In order to boost the national presence of banks along with their global reach, the amalgamation of banks was necessitated. This is not the first time that the Government is merging the banks together. The merger of these banks is aimed at making India a USD 5 trillion economy.
Mega Bank Merger: Key Figures, Motive, Impact, Significance & all you need to know - Explained
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Finance Minister of India has declared to merge 10 Public Sector Banks into 4 big banks that has reduced the number of PSU to 12 from 27 of which is a big consolidation of public sector banks. Key Pronouncement of the Merger The scheme of amalgamation has led to the merger of the following banks:. Why the Move? But looking at benefits of merger, this move is a landmark step towards the consolidation of banking operations in India.