PSU Bank Merger: The number of government banks in the country is going to reduce even further. The government is merging small government banks with big banks. The purpose of doing this is to create one big bank instead of small banks, which will improve their working capacity. The government wants that the number of banks should be reduced, but it should emerge as a strong entity so that the financial sector can be reformed, the scope of loans can be increased, the balance sheet and operations can also be improved. In this sequence, preparations are now in full swing to merge six more small government banks.

Which banks are included in the list?

Six small public sector banks like Indian Overseas Bank, Central Bank of India, UCO Bank, Bank of India, Bank of Maharashtra, Bank of India and Punjab and Sindh Bank can be merged with SBI, Bank of Baroda, PNB, Canara Bank or Union Bank. All these six banks are on the radar for the next phase of consolidation.

What was the suggestion of NITI Aayog?

Earlier, a NITI Aayog report had suggested that the government privatize or restructure small banks like Central Bank of India and Indian Overseas Bank. The country’s think tank believes that the Indian government should keep some large public sector banks, including Punjab National Bank (PNB), Bank of Baroda (BoB), Canara Bank, or State Bank of India. Whereas the remaining small government banks can either choose the option of privatization or merger or the government stake in them can be reduced.

According to reports, Indian Overseas Bank can be merged with SBI or PNB. PNB or BoB can take over Central Bank of India. Either SBI or BoB can take over Bank of India. Bank of Maharashtra can be merged with PNB or BoB.

Earlier the merger of these banks took place

Earlier, between 2017 and 2020, 10 small government banks were merged into 4 banks, due to which the number of government banks in the country reduced from 27 in 2017 to 12. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank were merged into State Bank of India.

Whereas Oriental Bank of Commerce and United Bank of India were merged into Punjab National Bank. Dena Bank and Vijaya Bank were merged with Bank of Baroda. Syndicate Bank was merged into Canara Bank. Whereas Andhra Bank and Corporation Bank were merged into Union Bank of India and Allahabad Bank was merged into Indian Bank.

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Canara utsav 2025: A new initiative is being taken by the public sector bank Canara Bank. A three -day grand exhibition has been organized in the Canara Festival 2025 being organized under it. This three -day spectacular exhibition has been organized between September 19 and September 21 at Rangoli Metro Art Center on MG Road, Bengaluru.

The purpose of Canara Festival 2025

The purpose of this event is to preserve and promote Indian cultural heritage on the one hand, on the other hand, people are to make people aware towards empowerment.

Local products and artisans forum

Through this, a platform has been provided to self-help groups and local artisans. There will be an opportunity to promote and sell local products here, as well as a glimpse of the diversity of Indian art, craft and food.

During this festival you can enjoy traditional sweets and organic food dishes. At the same time, designers can also see lamps and candles, pottery (pottery), sketching activities and pottery demo.

Women empowerment and cultural protection

Mahesh Pai, Chief General Manager of Canara Bank (Circle Office, Bangalore), about this exhibition, which runs from 11 am to 8 pm, says that the bank does not want to be limited to financial inclusion only through Canara Utsav 2025, but also wants to promote cultural and social inclusion.

He further said that this festival is a great evidence of the bank’s commitment towards skill development, empowerment of rich handicraft heritage and protection.

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Rbi on bank minimum balance: The Reserve Bank of India has denied any restriction on arbitrary minimum balance by banks. RBI Governor Sanjay Malhotra said that the central bank leaves the decision to banks how much minimum balance they decide. This statement from RBI has come at a time when ICICI Bank has increased the average monthly balance for the new savings account opening from 1 August 2025 to Rs 50,000.

The minimum balance in metro and urban branches has been increased from Rs 10,000 to Rs 50,000, while in semi-urban branches, it has been increased from Rs 5,000 to Rs 25,000 and in rural areas it has been increased to Rs 10,000.

RBI refuses to interfere

However, these changes will only apply to new customers, while the new minimum balance rules for old account holders will not apply until the notification is issued by the bank. If customers do not meet the terms of this average balance, then penalty will be imposed on them by the bank.

Reserve Bank of India Governor Sanjay Malhotra said on Monday that banks are free to fix the minimum balance in savings accounts and it does not fall under RBI regulatory jurisdiction. He said this in a conversation with reporters during a ceremony organized on financial inclusion at Gojiaia Gram Panchayat in Mehsana district of Gujarat.

What did Sanjay Malhotra say?

Asked about increasing the amount of minimum balance required for private bank ICICI’s savings account, Sanjay Malhotra said, “RBI has left the decision to decide the minimum balance on each bank. Some banks have kept it Rs 10,000, some have kept Rs 2,000 and some have given the customers. ICICI Bank has increased the minimum balance limit for those opening new savings accounts from 1 August.

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Bank unclaimed deposit: By June 30, 2025, the ‘uncured deposit’ in the country’s banks has gone beyond 67,000 crores. No contenders for these money are being found. The Finance Ministry informed in Parliament on Monday that these money has been transferred to the Reserve Bank of India (RBI) Depositors Education and Awareness (DEA) funds.

SBI has the highest ‘uncured deposits’

SBI tops the list. It was 29 percent stake in the ‘uncured deposit’. SBI transferred Rs 19,329.92 crore. After this, Punjab National Bank is at number two with Rs 6,910.67 crore, Canara Bank is at number three with Rs 6,278.14 crore and ICICI Bank with Rs 2,063.45 crore. Minister of State for Finance Pankaj Chaudhary told in the Lok Sabha that 87 percent of the total deposits without claims (Rs 58,330.26 crore) were with the government banks.

What is ‘Unclaved Deposit’?

‘Unclamed deposit’ means the amount deposited in the bank or current account in which nothing has been done for 10 years. That is, when no account is operated for 10 years, it is called ‘uncured’ and the amount deposited in it is transferred to DEA fund. The money deposited in the DEA fund also includes interest on it. In addition to the money deposited in savings or current account, fixed deposits, RD, bank drafts, pay orders, money lying in bankers check are also transferred to Dea Fund.

Can you claim money in DEA fund?

If you want, you can stake your claim on the ‘uncured deposit’ transferred to Dea Fund. For this, first you have to contact your bank. The bank will check all your documents and will return the money to you if found right. It will be compensated with DEA fund only. There is no time limit to claimless money. You can claim it whenever you want. However, for such a situation, there is a need to keep transactions from time to time in the bank account and keep bank details updates.

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Punjab national bank: Punjab National Bank (PNB) has given great relief to its account holders. The bank has announced that no penalty will be charged for not maintaining a minimum average balance in the savings account. This decision of the bank will provide relief to the people from the concern of keeping the minimum balance in the account.

The bank says that the aim of this step is to promote financial inclusion and make banking more accessible for all. This new rule of the bank has come into force from July 1, 2025. This will help women, farmers and lower income families especially. Last month, Canara Bank also removed the need to maintain average monthly balance (Amb) on all its accounts from the month of June.

Why do banks impose minimum balance rule?

The bank is therefore asks to maintain the minimum average balance in its account so that its operational expenses can be met and customers can spend various services such as online banking, ATM, branch, etc. Many times the bank also provides facilities like more interest rate, free ATM transaction to customers on maintaining minimum balance.

At the same time, the bank charge a fine from its customers for not maintaining minimum balance. Many times, if the minimum average balance is not maintained in the account for a long time, the bank account is closed. Broadly understanding, the bank is a business, which depends on deposits and penalty to meet their expenses.

According to the RBI rules regarding minimum balance, the bank always keep in mind that the balance does not go to negative due to penalty in the account if there is no minimum balance maintained in the account.

Banks also earn from these things

However, many times banks remove this rule so that people from far-flung rural areas and low income are easy to use banking services without any fine. With this, the cost of the bank’s operational cost comes out of many other things such as SMS alert fees, service fees, transaction fees, interest, etc.

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No penalty for low balance: Till now, there was a rule in any bank that if you do not maintain a certain amount in a month, then you have to pay for it. But now a big relief is going to be available from a government sector bank. Now no fee will have to be paid even if the minimum balance bank is not in the bank. It has been announced by Canara Bank that there is no need to complete the rules of keeping minimum balance in the savings account.

The law of minimum balance is over

Canara Bank said that bank customers will no longer be charged for not having minimum balance in the account, which includes Savings Account, NRI Savings Account and Salary Account. The statement said on behalf of the bank that it has been implemented from 1 June 2025. Earlier, the account was charged by the bank if there was no certain minimum balance in the month.

This rule has been started by Canara Bank at present and it is expected that after this initiative of the bank, people will get relief because many people are unable to meet the terms of minimum balance, due to which they have to be charged every month.

Separate charge of separate bank

It is worth noting that at this time, every bank has different rules for urban, semi urban or rural areas for minimum balance from every bank. From time to time, changes are made by the bank. That is why it is definitely that you regularly know the rules of the bank, which has your account. If you do not have a minimum balance, you can be deprived of facilities like check book, or net banking on behalf of some banks.

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Protean egov share low: A news came from the Income Tax Department that the Income Tax Department has not named Protean Egov Tehnologies in its PAN 2.0, after which there has been a tremendous decline in the stock of this company. On Tuesday i.e. May 20, the business started and its stock slipped to the level of Rs 995. This is the lowest level during the last 52 weeks i.e. one year. A day earlier, on Monday, the stock had a lower circuit of 20 percent.

At around 11.24 am, Protean Egov Technologies shares were trading at 1,073.20 levels at Rs 70, or 6.12 percent, at 1,073.20. The management has been told by the company that its business is not going to be affected by the absence of this project.

Protein Egov Technology told that PAN 2.0 has no connection with the processing and distribution of the project and RFP is a long -term sto, so it is not going to have any effect on its financial situation.

Project came out of the company’s hand

In the information sent to the stock market on Sunday, the protein was told by the Egav that the proposal for the development, design, operation, maintenance and implementation of PAN 2.0 was issued by the Income Tax Department for the managed service provider. Also, a notice was also issued to order dialects. The company told in the regulatory filing that he had participated in the RFP dialect for that project.

Protein Egov Technology shares have seen a decline of about 15 percent during the last 12 months. The company said in its statement that this project is associated with technology improvement from their understanding, so it includes the design of PAN system, development and other things in the Income Tax Department.
The company further said that its impact on their service of issuing PAN processing under their current contract with income tax is very limited.

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