Read the latest Current Affairs about Bank Merger. Important for all Competitive exams- UPSC, SSC, and Banking. Bank Merger is a very important topic for UPSC aspirants.
Government of India has announced the merger of 10 public sector banks (PSBs) into 4 banks.
- Under the scheme of amalgamation,
- Indian Bank will be merged with Allahabad Bank (anchor bank - Indian Bank);
- PNB, OBC and United Bank to be merged (PNB will be the anchor bank);
- Union Bank of India, Andhra Bank and Corporation Bank to be merged (anchor bank - Union Bank of India); and
- Canara Bank and Syndicate Bank to be merged (anchor bank - Canara Bank).
- In place of 27 public sector banks in 2017, now there will be 12 public sector banks after the latest round of consolidation of PSU banks.
- The merger announcement followed by an equity infusion move of Rs 55,250 crore in these banks to enable them to grow their loan book.
- This is a step by the government towards building Next-Generation Banks. The consolidation of public sector banks will give them scale.
Important Info :
- Last year, the government had approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda (BoB) that become effective from April 1, 2019.
- In 2017, the State Bank of India absorbed five of its associates and the Bharatiya Mahila Bank.
According to RBI's annual report, the number of cases of frauds reported by banks saw a jump of 15 % year-on-year basis in 2018-19, with the amount involved increasing by 73.8 % in the year.
- The number of cases of frauds reported by banks saw a jump of 15 % year-on-year basis in 2018-19, with the amount involved increasing by 73.8 % in the year.
- In FY19, the banking sector reported 6,801 frauds involving Rs 71,542.93 crore as against 5,916 cases involving Rs 41,167.04 crore reported in 2017-18.
- Among bank groups, PSBs have accounted for the bulk of frauds reported in 2018-19. It followed by private sector banks and foreign banks.
- The average lag between the date of occurrence and its detection by banks was 22 months. The average lag for large frauds, i.e. Rs 100 crore and above, amounting to Rs 52,200 crore reported during 2018-19, was 55 months.
- A number of frauds related to advances predominant followed by card/internet related frauds and deposits related frauds. Frauds relating to card/internet and deposits constituted only 0.3 % of the total value of frauds in 2018-19.
- Cheating and forgery the major component, followed by misappropriation and criminal breach of trust.
The Central Board of Direct Taxes (CBDT) notified the creation of a five-member special cell to address grievances of startups with relation to angel tax and other tax-related issues.
- The 'startup cell' headed by the member (Income Tax and Computerisation) of CBDT.
- The cell will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to the administration of the Income-tax Act, 1961.
Important Info :
Last week, Union Finance Minister also declared exempting startups from the angel tax. To mitigate the genuine difficulties of startups and their investors, decide that section 56(2)(viib) of the Income-Tax Act shall not be applicable to a startup registered with DPIIT.