On Wednesday, the finance minister Nirmala Sitharaman said the merger of 10 PSBs into 4 will come into effect from April 1, 2020. "The Union Cabinet has given its go-ahead for the merger proposal and the government has been in regular touch with these banks," Sitharaman told reporters.
There shall be no regulatory hurdles, added the minister.
As per the decision, United Bank of India and Oriental Bank of Commerce will be merged with Punjab National Bank ; Syndicate Bank will be merged with Canara Bank; Allahabad Bank and Indian Bank will be merged; and Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.
"The banks' merger is on course and decisions have already been taken by the respective bank boards," the minister said.
In August last year, the government announced the mega public sector bank merger taking the total count to just 12 bank as against 27 earlier. Through the merger, there is plan to have global-sized banks in the country.
Earlier, five associate banks of SBI as well as Bharatiya Mahila have been merged with the larger SBI and later Vijaya Bank and Dena Bank have been merged with Bank of Baroda.