No proposal for merger of PSBs at present: Min

New Delhi: There is presently no proposal on merger or consolidation of state-owned banks before the government, Parliament was informed on Monday.

“Presently, no proposal on merger or consolidation of Public Sector Banks (PSBs) is under consideration of the Government,” Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha.

Replying to another question, he said, the Foreign Direct Investment (FDI) limit in PSBs and private sector banks is 20 per cent and 74 per cent, respectively, as per the extant guidelines/ Foreign Exchange Management (Non-Debt Instruments) Rules 2019.

“FDI is considered as a major source of non-debt financial resource for the economic development, leading to long-term sustainable capital in the economy and contributes towards technology transfer, development of strategic sectors, greater innovation, competition and employment creation and supplement domestic capital, technology & skills for accelerated economic growth and development,” he said.