The Reserve Bank of India (RBI) stated that the schemes for the merger of 10 state-run banks into four lenders will come into force from 1 April. RBI also stated that the branches of merging banks will operate as of the banks in which the banks have been amalgamated. The banks sought to defer the merger schemes of lenders due to the lockdown triggered by coronavirus outbreak. Union Finance Minister Nirmala Sitharaman announced that the megabank consolidation plan would take effect from 1 April 2020 despite the COVID-19 pandemic. Background: On 4 March, the government of India notified the amalgamation schemes for 10 state-owned banks into four as part of its consolidation plan. The move aimed to create bigger size stronger banks in the public sector. The amalgamation of 10 PSBs into four Banks include: (i) Oriental Bank of Commerce (OBC) and United Bank of India into Punjab National Bank (PNB) (ii) Syndicate Bank into Canara Bank (iii) Andhra Bank and Corporation Bank into Union Bank of India (iv) Allahabad Bank into Indian Bank
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