Cabinet has also approved framework of consolidation of public sectors banks. The decision is aimed at creating strong and competitive banks in public sector to meet the credit needs of a growing economy, absorb shocks and have capacity to raise resources without depending unduly on the State exchequer.<br/><br/>The decision about creating strong and competitive banks could be solely based on commercial consideration. Finance Minister Aruin Jaitley told reporters that the final scheme will be notified by the Central government in consultation with the Reserve Bank of India.

Cabinet has also approved framework of consolidation of public sectors banks. The decision is aimed at creating strong and competitive banks in public sector to meet the credit needs of a growing economy, absorb shocks and have capacity to raise resources without depending unduly on the State exchequer.<br/><br/>The decision about creating strong and competitive banks could be solely based on commercial consideration. Finance Minister Aruin Jaitley told reporters that the final scheme will be notified by the Central government in consultation with the Reserve Bank of India.