Shubham Khare and Niharika Maske give an extensive analysis about the tension between RBI and CCI.

Abstract

Consolidation of public banks as a way of reform has once again come in the spotlight with the recent economic downturn. However, the negative effects of the mergers may result in a less competitive banking industry bringing it within the purview of competition laws, thus creating a jurisdictional issue between the RBI and CCI. The article firstly talks about the motivations behind bank mergers and the necessity of the move in India. It then provides an introduction to competition law, highlighting its purpose and the position of bank mergers in the aforementioned law in light of the relevant provisions. It also analyses the functions of RBI and its nature of handling bank mergers and sheds light on the jurisdictional tussle between the RBI and CCI. Finally, it suggests a model relationship to be adopted between Sectoral Regulators and CCI in India, keeping in mind the Indian scenario and also drawing inference from several foreign jurisdictions.