The Government has set-up an alternative mechanism panel under the chairmanship of the Union Finance Minister Arun Jaitley for consolidation of Public Sector Banks.
The panel, which has Piyush Goyal, Minister of Railways and Coal and Nirmala Sitharamn, Minister of Defence, as members, will study and clear the proposal received from PSBs for in-principle approval to formulate schemes of amalgamation. A report on the proposals cleared by the panel will further be sent to Cabinet every three months.
The Final Schemes formulated will be approved by the Central Government, and laid in both the Houses of Parliament.
Alternative Mechanism will be serviced by the Department of Financial Services for this purpose.