1) Unlocking potential through consolidation, big banks with enhanced capacity to increase credit and bigger risk appetite, with national presence and global reach
2) Punjab National Bank, Oriental Bank of Commerce, and United Bank to be merged together.
3) Canara Bank and Syndicate Bank to be merged together
4) Union Bank, Andhra Bank, and Corporation Bank to be merged together.
5) Indian Bank and Allahabad Bank to be merged together.
6) India will now have 12 Next Gen Public Sector Banks, from 27 in 2017.
PSB Boards Empowered
1) Board committee of nationalised banks to appraise performance of GM & above.
2) PSBs to recruit Chief Risk Officer from market.
3) Board to decide system of Individual Development Plans for all senior executive positions.
Strengthening Board Committee System
1) Flexibility given to boards of large PSBs to enhance sitting fees of Non-Official Directors (NODs).
2) Boards given mandate to reduce/rationalise board committees.
3) MCB loan sanction thresholds enhances by up to 100%.
Enhancing effectiveness of Non-official Directors (NoDs)
1) NODs to perform role analogous to independent director.
2) Boards given mandate for training of directors.
3) Executive Directors’ strength raised to 4 in lager banks.