Central cabinet approves merger of 10 government banks, 100% stake in NRI Air India

New delhi date. 04 Mar 2020, Wednesday

Many proposals were approved at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday. The proposal includes research into company law, mutual merger of 10 government banks and the proposal to create four large banks and change the FDI policy for airline disinvestment. After the Cabinet meeting, Finance Minister Nirmala Sitharaman said that after getting the approval, the dissolution of PSU banks will be implemented with an april.

Notably, the government has announced merger of OBC and United Bank with Punjab National Bank. Apart from this, bank and syndicate will be merged with Canare. Andhra Bank and Corporation Bank will merge with Union Bank. Indian Bank and Allahabad Bank will be merged.

Union Cabinet Minister Prakash Javadekar said that the Union Cabinet has also decided to relax foreign investment rules in the Civil Aviation Sector. Under the new rules, NRI will now be able to buy 100% stake in Air India.

The Cabinet has approved the proposal for 72 changes to the Companies Act 2013. Finance Minister Nirmala Sitharaman said that through this change, there are plans to remove many types of disturbances from the category of recognizable crime. Following this change, domestic companies will now be able to list overseas.