New Delhi: The mergers of regional rural banks that are ordered by the government are now exempt from seeking CCI approval, according to a notification -- a move that will lead to faster closure of such transactions.
The Competition Commission of India (CCI) keeps a tab on unfair business practices across sectors. Mergers and acquisitions beyond a certain threshold compulsorily require clearance from the fair trade watchdog.
Regional Rural Banks (RRBs) – set up under the RRB Act, 1976 – provide credit and other facilities to small farmers, agricultural labourers and artisans, among others, in the rural areas.
Currently, there are 56 RRBs.
As per a recent notification, the corporate affairs ministry said the mergers of RRBs directed by the government have been exempted from seeking CCI approval. The exemption has been granted for a period of five years.
The provisions of Section 5 and 6 of the Competition Act would not be applicable for five years on such transactions.
Section 5 and 6 pertain to combination of enterprises.