The Cabinet Committee on Economic Affairs (CCEA) recently green-lighted the merger of three state-run banks, namely Vijaya Bank, Bank of Baroda, and Dena Bank. This move is the first-ever three-way merger in India’s banking sector, propelling the amalgamated entity to the third largest bank spot in the country.
The Mergers and Acquisitions Process
In this merger, Bank of Baroda plays a pivotal role as the transferee bank while the other two public sector banks act as transferor banks. Simply put, the businesses of Vijaya Bank and Dena Bank will be absorbed by Bank of Baroda. The Board of Bank of Baroda holds the responsibility of protecting the interests of all employees and officers of the transferor bank. The merger transpired officially on April 1, 2019, after receiving a nod from the ‘Alternative Mechanism’ (AM), chaired by the then Finance Minister Arun Jaitley in September 2018.
| Event | Date |
|---|---|
| Merger approved by AM | September 2018 |
| Merger officially takes effect | April 1, 2019 |
National Healthcare Changes: National Health Agency Becomes National Health Authority
In other news, the Union Cabinet endorsed the restructuring of the existing National Health Agency into the “National Health Authority” (NHA). The main objective of this shift is to implement Pradhan Mantri – Jan Arogya Yojana (PM-JAY) more effectively and efficiently. The NHA, which is an attached office to the Ministry of Health & Family Welfare, plans to provide full autonomy, accountability, and transparent decision making. The NHA’s responsibilities include operational guidelines formulation, setting premium ceilings, and strategically purchasing healthcare from the private sector. In addition, it will build a health information technology platform and work with the Insurance Regulatory and Development Authority. The CEO of NHA now holds the position equivalent to a Secretary to the government of India with full financial powers.
High-Level Panel for Assamese Identity Safeguard
The Cabinet also approved the constitution of a High-Level Committee that is bound to implement Clause 6 of the Assam Accord, providing protection for the indigenous people of Assam. This committee is charged with recommending constitutional, legislative, and administrative safeguards for the indigenous people of Assam, including reserving seats in the state assembly.
Background: The Assam Accord and its Implementation
The Assam Accord was a historic agreement signed in 1985 to conclude a six-year movement demanding the detection and deportation of illegal immigrants, mainly from Bangladesh. The accord was signed between the central and Assam governments and the All Assam Students’ Union (AASU) and the All Assam Gana Sangram Parishad (AAGSP). However, successive governments failed to implement key clauses of the agreement fully. Among other actions, the newly formed High-Level Committee will address these shortcomings and ensure the effectiveness of actions since 1985 to implement Clause 6 of the Assam Accord.
Looking into the Issues of Bodo People
This committee will also delve into issues faced by the Bodo people, especially the measures mentioned in the Memorandum of Settlement signed between the Government of India, Assam government, and the Bodo Liberation Tigers Force in 2003. In relation, the Cabinet sanctioned the establishment of a Bodo Museum-cum-language and cultural study center, modernization of existing All India Radio Station and Doordarshan Kendra at Kokrajhar and naming a Superfast Train passing through BTAD as ARONAI Express.
The Bodoland Territorial Council (BTC), an autonomous administrative unit under the Sixth Schedule of the Constitution of India, comprises four districts – Kokrajhar, Chirang, Baska, and Udalguri. The Sixth Schedule provides provisions for the administration of Tribal Areas in Assam, Meghalaya, Tripura, and Mizoram.