Jaitley will head Alternative Mechanism for consolidation of PSBs

Speed Post News Network

New Delhi : An Alternative Mechanism for consolidation of the Public Sector Banks (PSBs) has been constituted under the Chairmanship of Union Finance and Corporate Affairs Minister Arun Jaitley. Defence Minister Nirmala Sitharaman and Railway Minister Piyush Goyal will be the members of the Alternative Mechanism.
The proposals received from banks for in-principle approval to formulate schemes of amalgamation will be placed before the Alternative Mechanism. A Report on the proposals cleared by Alternative Mechanism will be sent to the Cabinet every three months. Alternative Mechanism may also direct banks to examine proposals for amalgamation. Alternative Mechanism will receive inputs from Reserve Bank of India (RBI) before according in-principle approval, according to a PIB release.
Alternative Mechanism shall devise its own procedure for appraisal of amalgamation proposals by banks and be guided overall by the objectives of the Nationalisation Acts {Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980}. The Final Schemes formulated will be approved by the Central Government and laid in both the Houses of Parliament.