Parliament has passed the State Banks (Repeal and Amendment) Bill,2017 . The House adopted the amendment moved by the government regarding the bill. The Bill seeks to repeal the State Bank of India (Subsidiary Banks) Act, 1959, the State Bank of Hyderabad Act, 1956 and further to amend the State Bank of India Act, 1955.
Under it, the five associates banks that were merged are State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore. The merger of these banks have already been effective from 1st April, 2017.
Replying to debate on the bill, Minister of State for Finance, Shiv Pratap Shukla said, the merger of these banks into SBI will enhance profitability, provide better customer service . The merger will bring about increased capital base and increased ability to give loans. He said the decision of merger have been taken after approval of board of directors of these five banks and RBI.
Mr Shukla said, post merger every employee of these banks have been retained. Initiating the discussion, Jairam Ramesh of Congress stressed on the need of strengthening the banking system in the country and accountability in banks should be improved.
Ram Kumar Verma of BJP said the customer services will become better due to the merger. He said the merger is in the interest of the country as well as for the economy. Members from other political parties including TMC, AIADMK and CPI took part in the discussion.