Finance Minister Arun Jaitley has once again advocated for the merger of more Public Sector Banks. He batted for merger at RBI Central Board post-budget meeting. He said that
India needs fewer banks and mega banks which are strong to help the needs of common man. He said economies of scale are of great help in the banking sector.
He further added that there has been a reasonably high growth as far as revenues are concerned in the last 5 years. Earlier the amalgamation of Bank of Baroda with Vijaya Bank and Dena Bank, the first-ever three-way consolidation of banks in India, would be effective from April 1, 2019. After the merger, the number of public sector banks will come down to 18.
Speaking on the occasion, RBI Governor Shaktikanta Das said transmission of rate cut by banks is an important issue. He informed that RBI will hold meetings with banks on the issue on the 21st of this month.