In terms of banking supervision, “mega- mergers” involve the drawback that banking structures become less transparent and groups become more difficult to control by the management. Overall, the number of institutions that are to be classified as “too big to fail” will increase.
It is, therefore, essential that the State Finance Commissions are constituted every 5 years as per the mandate in Article 243-I of the Constitution and arrangements are made for their robust functioning. Although the provision under Article 243-I is identical to the provision under Article 280, its implementation has fallen short.