Modi govt seeks RBI's views on specific public sector bank mergers

In August last year, the government had approved a framework for the merger of PSBs

The National Democratic Alliance (NDA) government has asked the Reserve Bank of India (RBI) for its suggestions on specific public sector banks (PSBs) that could be merged in a bid to achieve synergy.

“The government has requested the RBI for views as well as suggestions regarding specific possible combinations to achieve scale and synergy for appropriate consideration,” Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Rajya Sabha on Tuesday. The government felt there might be various approaches on the merger of PSBs, and the RBI’s views could act as a guiding principle, a