Bank Consolidation Talks: FM Sitharaman on Bigger PSBs
Why in the news
The Finance Minister said discussions on building bigger banks through mergers or other routes are under way; no final approval yet.
Key facts
- Aim: world-class banks that compete globally, work efficiently and widen financial inclusion.
- 2018-20 consolidation: 13 PSBs into 5; SBI absorbed its associates and Bharatiya Mahila Bank.
- Now 12 PSBs; just SBI in the global top 50.
Other remarks
| Topic | Point |
|---|---|
| Branch staff | Local language skill, possibly part of appraisals |
| Lending | Easier loans, less paperwork |
| Markets | No F&O ban; remove hurdles, educate investors |
| Inclusion | 56 crore Jan Dhan accounts |
Exam angle
- Phase 1 mergers: 2018-20 (13 into 5); Jan Dhan accounts: 56 crore.