Bank merger drive in India in 2020-An economic perspective
Dr. NR Suryanarayana, Uma TG
The Finance Minister Sitharaman had announced the merger of 10 Public Sector Banks into four on August 30, 2019. This merger is approved by the union cabinet on 4 March 2020. The merger would be effective from April 1, 2020. The basic logic behind this merger is to increase the global competitiveness of the Indian banks. Now the total Public Sector Banks reduced to 12 from 27 in 2017 in India. The present article presents the consolidation of the banks as mega economic reform in a capsule.