The Reserve Bank of India (RBI) has revealed that the scheme of merging 10 Public Sector Unit (PSU) banks into four bigger lenders is on schedule despite the country-wide coronavirus lockdown and will come into force from 1 April, 2020.
The central bank said that the Oriental Bank of Commerce and United Bank of India will function as the branches of the Punjab National Bank starting from the next month.
Similarly, all Allahabad Bank branches will be treated as branches of the Indian Bank and all branches of Andhra Bank and Corporation Bank will function as Union Bank of India branches with effect from 1 April, 2020. Also, Syndicate Bank will function as the branch of Canara Bank.
The notice for the above amalgamations was released at the start of March this year. However, unions of bank officers had written to the Prime Minister Narendra Modi last week asking for a delay in the deadline in view of the coronavirus lockdown.
On 26 March, Finance Minister Nirmala Sitharaman made it clear that there would be no change in plans and the merger scheme will come into effect from 1 April. This statement was reiterated by the RBI later.
Customers and depositors of merging banks will be treated as customers of the bigger banks into which they have merged, the statement added.