Questions raised on the merging policy by PM Modi

In August 2017, the government had asked 21 public sector banks to present their plans for integration.
But due to this merger, the number of government banks will reduce from 21 to 19.

However, due to Dena Bank's poor health, doubts about the merger are raised. Dena Bank is now under the purview of the Reserve Correctional Action (PCA) of the Reserve Bank of India (RBI) as Dena Bank is currently under huge debt resulting that the bank has now been banned from paying any loan.

However, many people are considering this step more compulsion rather than beneficiary.

Former RBI governor Raghuram Rajan had raised questions on the intent of the merger of government banks several times. However, he had clarified that the integration of banks is not excessive, but the government's understanding should be clear that after all what motive it wants to achieve.