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Central Government takes bold steps to make India a Rs. 350 Lakhs Crores Economy!
Posted on: 31/Aug/2019 11:33:25 AM
The Central Government Finance Minister has announced new progressive revisions in the banking system in order to make India an economy of Rs. 350 Lakhs Crores.
With the decision taken to merge the banks, the total number of public sector banks will be reduced to 12. Rs. 55250 Crores will be granted for the capital for the public sector banks.
The latest announcement included the relaxation in the rules and regulations in 4 sectors including for foreign investments and concessions on the taxes imposed in the recent budget.
In the last central government rule under the Prime Minister Narendra Modi, 4 subsidiary banks of the State Bank of India and the Bharathiya Mahila Bank was merged with the State Bank of India.
In a similar step, Dena Bank and Vijaya Bank were merged with Bank of Baroda.
In this scenario, some more mergers of banks have been announced.
The central government Finance Minister, Nirmala Seetharaman announced some reforms in the banking system with the main objective of improving the growth of the economy in Delhi yesterday (Friday, 30th August).
Details
Punjab National Bank, Oriental Bank, and United Bank will be merged. After this merger, with the commercial trading of Rs, 18 Lakhs Crores, this would become the 2nd largest bank in the country.
Syndicate Bank and Canara Bank will be merged. India Union Bank, Andhra Bank, and Corporation Bank will be merged. Indian Bank and Allahabad Bank will be merged.
With the above, there would be a total of 12 public sector banks in the country, instead of the present 27.
Further, Rs. 55250 Crores will be granted as the capital for these banks. This grant will be availed for debt growth and measures towards economic growth.
The above grant will be distributed as under in Rupees Crores:
- Punjab National Bank - 16000
- Canara Bank - 6500
- Indian Overseas Bank - 3800
- Central Bank of India - 3300
- Bank of Baroda - 7000
- Indian Bank - 2500
- UCO bank - 2100
With the reform measures, the efficient management of the Finance Department, integration (merger), the country can achieve the target of an Rs. 350 Lakhs Crores Economy.
The uncollected recovery of debt burden issued of the Public Sector Banks has increased to Rs. 121076 Crores. Out of the uncollected debt payments, Rs, 75000 Crores has been collected. With this, the burden of uncollected debts has reduced from Rs. 8.65 Lakhs Crores to Rs. 7.90 Lakhs Crores.
An integrated monitoring committee of senior bank officials will be set up to monitor and review the performance of the senior management officials of the public sector banks.
The senior officials responsible for the disbursement of debt, etc., will be appointed based exclusively on their qualifications/skills. Squads will be formed in each bank to closely monitor the agencies with debts of over Rs. 250 Crores in order to ensure the collection of the debts given.
The payment made to the Honorary Directors for the better management of banks will be revised. The tenure of the bank directors and the members of the Administration Committee will be increased with the objective of facilitating them to perform at their best!
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