Rajeev Kumar, Finance Secretary, signified  government's decision to consolidate 10 public sector banks into four mega state-owned banks. This will help ecomy of India to achieve  $5 trillion target. unification of banks would create a strong and competitive banking system.  banking system would assist people of India better by providing better lending capacities, better techlogy with a wider outreach.

WATCH: Public Sector Bank Mergers Anunced: 10 PSBs Become 4; 12 Remain

 'To support next level of growth, country needed big banks. mega-merger anunced on Friday aims to achieve that objective. We will w have six mega banks with enhanced capital base, size, scale and efficiency to support high growth that country requires to break into club of middle income nations,' Kumar said in an interview. 

When asked about future, Kumar confidently stated that government enviss a 'techlogy-driven, clean, responsive' bank sector. Kumar furr elucidates tifying that Centre wants to provide 0.25% higher capital than required to keep in mind ir status domestically. Furrmore, Indian banks currently have 1% higher core capital requirement than Basel III rms. According to Kumar, state-owned banks can w look forward to efficiency, better service to customers and more opportunities for employees. 

RE: Public Sector Bank Mergers Anunced: 10 PSBs Become 4; 12 Remain

Rajeev Kumar on merger 

When asked about date of merger, Kumar tified that it would be decided after a consultation with boards of banks in question. In course of entire process, credit growth will t be abrupted. Kumar furr stated that customers will face issues whatsoever as a result of merger. He gave example of Bank of Baroda to cite an incident of a similar merger. 

're is a process which needs to be followed. re are some regulatory approvals which are required. Banks have sufficient time for charting out smooth and seamless amalgamation date. It could happen from January 1 or April 1 depending on ir reiness. It would t be later than April 1,' Finance Secretary asserted. He furr ded, 'We wanted to do it one time, give ro map and remove uncertainty. w re is uncertainty and ro map is all clear. Governance reforms done. Who wants to give ir power, we have given it. Even in appointments we have given it. w it is completely professionalised.' 

RE: 18 Things Former RBI Goverr Raghuram Rajan Said Should Be Done To Tackle NPAs And Or Indian Banking Sector Woes

Public sector banks merger, Nirmala Sitharaman assures loss of jobs

Finance Minister Nirmala Sitharaman h earlier dispelled doubts of individuals losing ir jobs as a result of merger. She assured that t one single employee will lose ir job as a result of merger. Sitharam h divulged into consolidation of banks on August 30 to reveal initiative to create fewer and stronger global-sized lenders. To end stagnation, government has proposed merger of public sector banks to boost ecomy.

WATCH: Nirmala Sitharaman: Bank Merger Won't Le To A Single Job Loss