Finance Minister Nirmala Sitharaman on Thursday (November 6) said that work has begun on the next phase of public sector bank (PSB) consolidation.

Speaking at an event, the minister said India needs “a lot of big, world-class banks” to meet the growing needs of a fast-expanding economy.

“We will need to sit and talk with the Reserve Bank of India (RBI) and banks on how they want to take it forward, and also discuss with the RBI how they want to build larger banks,” she said.

Sitharaman added that discussions with the central bank and banks are already underway. “Work has commenced. We are discussing with the RBI and banks. This is not just about amalgamation. We need an environment where banks can operate and grow,” she noted, indicating that the approach would go beyond simple mergers

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