Accepting and adapting to these changes will be difficult for UCBs because many of them are extremely small. Numerous banks have barely double-digit numbers of branches, which limits their business. Such banks will face many constraints and challenges while confronting the new changes. Many experts believe that the RBI is implementing a ‘one-size-fits-all’ policy without considering the inherent limitations of UCBs.
Recently, I heard some news. The Government of India is reportedly considering implementing another merger of the 12 existing public sector banks, reducing their number to just 3 government banks in the country. In July 1969, after the nationalization of 14 major banks in the country, a new category called ‘nationalized banks’ was created in India. Earlier, in 1956, under the State Bank of India Act, the former Imperial Bank was transformed into the State Bank of India, establishing the first government bank in the country. Other associate banks of the State Bank were its subsidiaries. In 1980, six more banks in the country were nationalized, increasing the number of nationalized banks to 20...(To continue, open the magazine)