Mega merger of PSU banks comes into force from 1st April

Mega merger of PSU banks comes into force from 1st April

Reserve Bank of India (RBI) stated that the schemes for the merger of 10 state-run banks into four lenders will come into force from 1 April. RBI also stated that the branches of merging banks will operate as of the banks in which the banks have been amalgamated. The banks sought to defer the merger schemes of lenders due to the lockdown triggered by coronavirus outbreak.

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As per the scheme, Oriental Bank of Commerce and United Bank of India will be merged into Punjab National Bank; Syndicate Bank into Canara Bank; Allahabad Bank into Indian Bank; and Andhra and Corporation banks into Union Bank of India. Banking services across the country are impacted due to the effect of COVID-19 as a near shut down is being observed across the country.

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