Cabinet Approves AM for Consolidation of Banks

New Delhi Aug 23: A meeting took place today.The Union Cabinet meeting headed by Prime Minister Narendra Modi has today approved an alternative mechanism to oversee PSU bank consolidation.Finance Minister Arun Jaitley, has announced the above news during the press conference.

The minister has said that "the alternative mechanism will review the proposals received by the government regarding consolidation of the banks".

He has also said that "the consolidation proposals must start from the banks and their boards will take a decision based on the commercial considerations".

The banks will follow the required procedures to be followed including SEBI. Finally the Govt will approve the proposal and notify them after consultation with RBI.

Currently, There are 21 PSB banks in India and government owns a majority share in them.