<h1>Cabinet Approves Public Sector Bank Amalgamation for Stronger, Competitive Banks via Alternative Mechanism; Final Scheme Pending RBI Consultation.</h1> The Union Cabinet, led by the Prime Minister, has approved the amalgamation of Public Sector Banks through an Alternative Mechanism to create stronger and more competitive banks. This decision, based on commercial considerations, requires proposals from bank boards and subsequent approval by the Alternative Mechanism. The final scheme will be notified by the Central Government in consultation with the Reserve Bank of India. This move aims to consolidate banks to meet credit demands, absorb economic shocks, and reduce reliance on state funds. The State Bank of India serves as a model for successful consolidation, having integrated six banks into its operations.