RBI says- Mega merger of PSU banks come to the force from 1st April

As the lockdown of 21 says is going on, the biggest bank, the Reserve bank of India has decided to go ahead with the merger plan of around 10 state run banks into the four large banks from 1st April.

The mega bank consolidation plan is effected and it will start from the 1st April. It is cleared by the finance minister Nirmala Sitharaman.

According to the scheme, the Oriental bank of Commerce and the United Bank of India will get merged into the Punjab National bank, Allahbad Bank into Indian bank, Syndicate Bank into Canara bank and Andhra and Corporation bank into Union bank of India.

The branches of Oriental bank of commerce and united bank of India will get operate as a branch of Punjab national bank from 1st April,2020 and the branches of Syndicate bank as Canara bank.

The RBI said-“The Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank Scheme, 2020 dated March 4, 2020, issued by the Government of India… The scheme comes into force on the 1st day of April 2020. Customers, including depositors of merging banks will be treated as customers of the banks in which these banks have been merged with effect from April 1, 2020.

Aletter from the all India bank officers confederation notes- “The finance minister yesterday announced a slew of measures in view of the deleterious effect of the contagion. We are also expecting an extension of closing related activities and the revision of the closing date itself from March 31 to June 30, which is the need of the hour.”