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Rajya Sabha
Reserve Bank of India has issued guidelines on merger/amalgamation of private sector banks on 11th May, 2005 which are available on the RBI website www.rbi.org.in. The guidelines provide for voluntary amalgamation of two banking companies under the provision of section 44A of the Banking Regulation Act, 1949. Amalgamations are normally decided by RBI on business considerations such as the need for increasing the market shares, synergies in the operations of businesses, acquisition of a business unit or segment, sound rationale for the amalgamation, the systemic benefits and the advantage accruing to the residual entity, etc.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question raised by Shri Janardan Dwivedi and Shri Motilal Vora in Rajya Sabha today.
BSC/BY/GN-315/05
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