By Admin 
Bank Merger News: The Government of India is working on a plan for major changes in the banking sector. Under this, the government is preparing for mega merger of banks. According to information received from media reports, on the recommendation of NITI Aayog, the government can merge small government banks into big government banks. Under this mega merger, the government can plan to merge Indian Overseas Bank, Central Bank of India, Bank of India and Bank of Maharashtra.
Due to which customers may have to face problems. After the merger of banks, they will have to get all the documents related to the new banks made. Due to which his work in the bank will increase. However, in such a situation, the bank also provides convenience to the customers and tries to save them from trouble.
Which banks can be merged?
The government can merge banks like Indian Overseas Bank, Central Bank of India, Bank of India and Bank of Maharashtra with big government banks of the country like State Bank of India, Punjab National Bank and Bank of Baroda.
According to the information received, record of discussion has been prepared regarding this proposal. Now preparations are being made to send it to the cabinet meeting and PM office for discussion. If all goes well and government approval is received, then the mega merger of these banks will be completed in the financial year 2026-27.
What is the government’s plan?
Due to increasing expenses of small banks and continuously increasing NPA, pressure on the banking system is increasing. Keeping this in mind, the government wants to merge the banks. Due to which the banking system becomes stronger and they can also be ready to compete at the global level. The government feels that the merger will increase the lending capacity of banks, strengthen their balance sheets and also enable them to operate more effectively.
Such steps have been taken by the government earlier also. Between 2017 and 2020, the government had created 4 big banks by merging 10 public sector banks. If this merger plan of the government is completed on time, then only four government banks will be left in the country. In which State Bank of India, Punjab National Bank, Bank of Baroda and Canara Bank will remain.
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