Mega bank merger on cards; will be effective from April 1: Nirmala Sitharaman

Nirmala Sitharaman

The centre on Thursday said that the mega bank merger plan is very much on track and will be effective from April 1 despite the outbreak of coronavirus pandemic. The Union Cabinet earlier this month Okayed merger of 10 public sector banks into four global size lenders, starting from next financial year.

When the Finance Minister is asked about any change in the deadline, she replied, “at the moment there is nothing on that”, while addressing the media yesterday on the lines of coronavirus outbreak.

Banking Secretary Debasish Panda informed that the merger process is very much on cards and expressed hope that the banking sector would meet the challenges occurred due to pandemic.

“That is very much on the track. It’s parallel activity going on. As far as fund transfers etc are concerned, necessary arrangements will be made,” Panda said.

Earlier, All India Bank Officers’ Confederation (AIBOC) had requested Prime Minister Narendra Modi to shift mega-merger exercise of banks in view of coronavirus outbreak.

Banking services across the country are impacted due to COVID-19 due to the nationwide lockdown.

After the amalgamation, there will be seven large public sector banks (PSBs), and five smaller ones. There were as many as 27 PSBs in 2017.

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