Should banking M&As come under the CCI?

.....Another aspect to consider is whether consolidation would lead to monopolistic and unfair trade practices. The industry follows a base rate system for pricing that takes into account the cost of funds, operational costs and margins to arrive at a price. The high level of transparency and grievance redressal mechanism precludes unfair trade practices. The industry may, in effect, benefit from consolidation, given the current fragmented state, helping improve economies of scale and ability to cross-subsidise products and pricing. Additionally, appropriate risk management practices and financial strength are more crucial to the sustainability of the sector. Considering these factors, the commission may perhaps rely on RBI’s approval framework.

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