A fake government document claiming that nine public sector banks will be merged into three larger banks is circulating widely on social media. The Press Information Bureau (PIB) Fact Check Unit has dismissed the document as fabricated and clarified that it was not issued by the Ministry of Finance.
The document has been designed to resemble an official Gazette of India notification, which has led to confusion among bank customers and employees. However, the government has not issued any such notification for the proposed mergers.
What Does the Viral Bank Merger Claim Say?
According to the fake document, Indian Bank, Bank of Maharashtra and Central Bank of India would be merged with State Bank of India (SBI) to create a new entity described as the “SBI Group.”
The document further claims that Union Bank of India, Bank of India and Punjab & Sind Bank would be merged into Punjab National Bank (PNB). It also alleges that Canara Bank, Indian Overseas Bank and UCO Bank would be brought together under Bank of Baroda.
PIB Fact Check has rejected these claims and said the circulating document is fake. The clarification comes amid renewed speculation on social media about another round of consolidation among public sector banks.
Why Are People Believing the Fake Merger News?
The latest claim has attracted attention partly because India has previously undertaken large-scale consolidation of public sector banks.
In 2019, the government announced the consolidation of 10 public sector banks into four entities. The amalgamations involved Punjab National Bank with Oriental Bank of Commerce and United Bank of India, Canara Bank with Syndicate Bank, Union Bank of India with Andhra Bank and Corporation Bank, and Indian Bank with Allahabad Bank. The mergers came into effect from April 1, 2020.
Earlier, Bank of Baroda, Vijaya Bank and Dena Bank were also amalgamated, with the merger taking effect on April 1, 2019.
These earlier consolidation exercises have made fresh merger claims appear plausible, particularly to customers and employees who experienced those changes.
What Is the Current Status of PSU Bank Mergers?
The Department of Financial Services currently lists 12 public sector banks, including SBI, PNB, Bank of Baroda, Canara Bank, Indian Bank, Union Bank of India, Bank of India, Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank and UCO Bank.
A genuine bank merger involves a formal government process and consultation with the Reserve Bank of India. Government records from earlier amalgamations show that such proposals involved the relevant bank boards, RBI inputs and government approval before the schemes were notified.
Therefore, the viral Gazette claiming that nine PSU banks are being merged into SBI, PNB and Bank of Baroda should not be treated as an official government announcement. People should verify such banking-related claims through the Ministry of Finance, Department of Financial Services, RBI or PIB Fact Check before sharing them.