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Raghuram Rajan Questions Government’s Plan to Consolidate Banks
September 07, 2017
Former Reserve Bank of India Governor Raghuram Rajan has questioned the government’s plan to merge several public-sector banks in the near future. He said that while he is not against the decision per se, the government should be clear about the purpose of the same.
Rajan said that merging several banks is a complicated process that demands a great deal of time and effort. He said that in the process IT systems, HR systems, and even the cultures have to be merged.
As the government plans to limit the total number of PSBs to 15 from the current 21, FM Arun Jaitley said that the objective is to create stronger banks that can improve economic growth.
