Govt Plans to Begin Next Round of PSB Mergers Soon, Aims To Have 4-5 Big Banks: Report

 

With an aim to have 4-5 banks as big as State Bank of India (SBI), the government is planning to initiate the next round of state-run banks’ mergers after a detailed study on the outcome of amalgamation in public sector banks (PSBs), according to an ET report. Currently, there are seven large PSBs and five smaller ones in India.

“Concerned banks have been asked to submit their feedback by month end. We will be holding wider consultations through Indian Banks’ Association (IBA) and with other stakeholders before firming up the future strategy,” the report said quoting an official.

Read More: Covid vaccine: Government to give free boosters from tomorrow for 75 days

The Centre had in 2019 announced a merger of 10 PSBs into four large lenders, bringing down the number of government-run banks to 12 as compared with 27 in 2017. The merger had come into effect starting April 2020.

United Bank of India and Oriental Bank of Commerce were merged with Punjab National Bank; Syndicate Bank was merged with Canara Bank; Allahabad Bank was amalgamated with Indian Bank; and Andhra Bank and Corporation Bank were consolidated with Union Bank of India.

In 2019, Dena Bank and Vijaya Bank were merged with Bank of Baroda. Prior to this, the government had merged five associate banks of SBI and Bharatiya Mahila Bank with India’s largest lender SBI.

Read More: Aadhaar Card update: Check UIDAI’s process to change address on Aadhaar card

“Government, after consulting RBI, approved that respective Board of Public Sector Banks (PSBs) may consider amalgamation. Bank Boards concerned considered the amalgamation and approved the same in-principle. The government, after considering inputs of RBI and in-principle approval and inputs of banks, amalgamated Vijaya Bank and Dena Bank into Bank of Baroda w.e.f. 1.4.2019 and Oriental Bank of Commerce and United Bank of India into Punjab National Bank, Andhra Bank and Corporation Bank into Union Bank of India, Syndicate Bank into Canara Bank, and Allahabad Bank into Indian Bank, w.e.f. 1.4.2020,” the MoS Finance had stated last year in a written reply to the Lok Sabha.

Apart from merger, the privatisation of PSBs is also on the cards. While the government proposed privatisation of two PSBs in the last Budget, some feel that the process could be initiated only after more consultations among stakeholders, including potential investors.

The Niti Aayog has already recommended the privatisation of Indian Overseas Bank (IOB) and Central Bank of India (CBI). However, the government has not yet taken a final call on this.

The finance ministry is also in discussions with the Reserve Bank of India (RBI), the banking sector regulator, on ownership and controlling stakes issues relating to privatisation. Promoters can currently hold a maximum 26 per cent stake in private banks, according to another ET report.

The government had listed the Banking Laws Amendment Bill, 2021, in the winter session of Parliament but it wasn’t introduced. The Bill had proposed “amendments in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980 and incidental amendments to Banking Regulation Act, 1949”.

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the Corona ep
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the Incom
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5% TDS on amounts exceedi
Read more