Finance Ministry Rules Out Merger, Issues Revised Document To Meet Select Banks And Insurance Firms

The Committee on Subordinate Legislation, Lok Sabha will meet representatives of four public sector banks early next year, according to a Dec. 16 document from finance ministry.

The meeting will be held with representatives of Union Bank of India, UCO Bank, Bank of Maharashtra and Bank of India on Jan. 2 and Jan. 6, 2024 respectively, as per the document.

The discussions would be centred around rules and regulations framed under the Banking Regulations Act 1949 and other banking laws as applicable.

The revised document comes after a Dec. 14 notice mentioned the words "in post-merger scenario" for meetings with these PSU banks.

The notice also led to speculations around the meeting being for discussions on a possible merger between UCO Bank and Union Bank of India, and Bank of Maharashtra and Bank of India.

However, the new document doesn't mention the word 'merger.'

A finance ministry official confirmed to NDTV Profit that the said committee was not empowered to do anything like merger. The old notice was also 'without any basis' and a mis-interpretation of the line, the person said.

Such meetings are a part of the regular process, the person added.

According to the notice, the study visit programme of the Committee will also include informal discussions with representatives of the Reserve Bank of India on Jan. 2, with regard to the rules framed under the RBI Act of 1934.

It would also hold these informal talks with insurance companies.

These include Insurance Regulatory and Development Authority of India, Life Insurance Corporation of India, SBI Life Insurance, National Insurance Co. Ltd., Oriental Insurance Co. Ltd., United India Insurance Co. Ltd., and The New India Assurance Co. Ltd. on Jan. 2.

On Jan. 5, the Committee would meet representatives of the National Bank of Agriculture and Rural Development and India Infrastructure Finance Corporation Ltd. on various rules and acts related to the organisations.