Merger of 10 PSU Banks into 4 comes into effect from today

Under the consolidation scheme, United Bank of India and Oriental Bank of Commerce will be merged into Punjab National Bank.

Created On: Apr 1, 2020 14:48 IST
RBI Announcement regarding State Banks Merger
RBI Announcement regarding State Banks Merger

The merger of 10 state-run banks into 4 larger banks has been implemented from today, April 1, 2020. The announcement regarding the amalgamation has been done by GOI earlier in March 2020.

The government made this announcement in early March with the purpose of creating stronger banks in the public sector. Though the central government announced the plan but RBI has been given the charge for the successful implementation of the plan.

The branches of the state-run banks will work as the branches of the banks in which they have amalgamated. This decision by GOI has been taken under Section 7 of RBI that gives the power to the government to make rulings on RBI functioning in the interest of the public.

Details of 10 State-Run Banks Amalgamation:

As per the consolidation scheme, the details of 10 state-run banks into 4 are mentioned below-

United Bank of India and Oriental Bank of Commerce will merge into Punjab National Bank

Syndicate Bank will merge into Canara Bank

Allahabad Bank into Indian Bank

Corporation and Andhra Banks will be merged in Union Bank of India

The objective behind the merger:

The major objectives of the merger are:

To help India make a USD 5 trillion economy

Reducing the lending cost

Enhancing the capacity in order to increase credit

To bring next-generation technology for the banking sector

Banks that have strong national and international reach

To improve the ability to raise market resources.


The announcement of the mega-merger of the ten big public sector banks (PSBs) into four was made by Union Finance Minister Nirmala Sitharaman in August 2019. The merger was under the Bank Consolidation plan among other major initiatives and steps with the aim to boost India’s economic growth. The Union Cabinet under the chairmanship of PM Narendra Modi gave its official approval to the merger plan in early March 2020.

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप


Related Stories

Comment (0)

Post Comment

0 + 6 =
Disclaimer: Comments will be moderated by Jagranjosh editorial team. Comments that are abusive, personal, incendiary or irrelevant will not be published. Please use a genuine email ID and provide your name, to avoid rejection.

    Monthly Current Affairs PDF

    • Current Affairs PDF November 2021
    • Current Affairs PDF October 2021
    • Current Affairs PDF September 2021
    • Current Affairs PDF August 2021
    • Current Affairs PDF July 2021
    • Current Affairs PDF June 2021
    View all

    Monthly Current Affairs Quiz PDF

    • Current Affairs Quiz PDF November 2021
    • Current Affairs Quiz PDF October 2021
    • Current Affairs Quiz PDF September 2021
    • Current Affairs Quiz PDF August 2021
    • Current Affairs Quiz PDF July 2021
    • Current Affairs Quiz PDF June 2021
    View all