Question

RBI's Mega Bank Consolidation Plan of Merger of 10 banks into 4 became effective from which date?

• A. 1 January, 2020
• B. 1 March, 2020
• C. 3 March, 2020
• D. 1 April, 2020

Answer 1

The Correct Option is D

The question asks about the effective date of the Mega Bank Consolidation Plan by the Reserve Bank of India (RBI), which involved the merger of 10 banks into 4. This plan was part of the Indian Government’s initiative to consolidate and stabilize the banking sector by creating larger, more robust banks. Let's analyze the options given:

• 1 January, 2020: This option is incorrect as the merger was not implemented at the beginning of the calendar year.
• 1 March, 2020: This timeline is also incorrect. While discussions and approvals for such mergers might have been ongoing, this date does not correspond to the implementation date of the mergers.
• 3 March, 2020: There were no major announcements or implementations of the merger on this date. Thus, it is incorrect.
• 1 April, 2020: This is the correct choice. The RBI's Mega Bank Consolidation Plan officially came into effect on 1 April, 2020. This date was chosen to coincide with the beginning of the financial year in India, making administrative transitions smoother for both banks and regulatory authorities.

Thus, the correct answer to the question is 1 April, 2020. This date marked a significant transformation in the Indian banking sector, contributing towards enhanced banking efficiency and competitive operations.