Mega Merger of 10 PSBs to be effective from 1st April 2020

The Reserve Bank of India has notified with a circular that the mega merger of 10 PSBs will be effective from the start of new financial year i.e. 1st April 2020.

Union Finance Minister Nirmala Sitharaman announced a big consolidation of public sector banks in 2019. As per the scheme of amalgamation, 10 public sector banks are to be merged into 4 banks. Now, the Reserve Bank of India has notified with a circular that the mega merger of 10 PSBs will be effective from the start of new financial year i.e. 1st April 2020.

As per the recent RBI circular, 10 PSBs will be merged into 4 in the following manner:

  • From 1st April, 2020, all branches of Oriental Bank of Commerce and United Bank of India will operate as branches of Punjab National Bank. Also the customers, including depositors of Oriental Bank of Commerce and United Bank of India, will be treated as customers of Punjab National Bank with effect from April 1, 2020.
  • From 1st April, 2020, all branches of Andhra Bank and Corporation Bank will operate as branches of Union Bank of India. Also, the customers, including depositors of Andhra Bank and Corporation Bank, will be treated as customers of Union Bank of India with effect from April 1, 2020.
  • From 1st April, 2020, all branches of Allahabad Bank will operate as branches of Indian Bank. Also the customers, including depositors of Allahabad Bank, will be treated as customers of Indian Bank with effect from April 1, 2020.
  • From 1st April, 2020, all branches of Syndicate Bank will operate as branches of Canara Bank. Also the customers, including depositors of Syndicate Bank, will be treated as customers of Canara Bank with effect from April 1, 2020.

After the amalgamation, the total number of Public Sector Banks in the country will come down to 12 banks.

Important takeaways for all competitive exams:

  • RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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