Key Clarification on Merger of Banks.. News of 9 Public Banks Going Viral is False

New Delhi: The news of the merger of public sector banks in the country has once again become a topic of discussion. A fake gazette notification has been widely circulated on social media stating that nine public sector banks will be merged into three large banks. However, the Press Information Bureau (PIB) fact-check department has denied this propaganda.In the document that went viral, it was mentioned that Indian Bank, Bank of Maharashtra, Central Bank of India will be merged with State Bank of India, Union Bank of India, Bank of India, Punjab and Sind Bank will be merged with Punjab National Bank, as well as Canara Bank, Indian Overseas Bank and Uco Bank will be merged with Bank of Baroda. However, the government clarified that the document is not official.

What is the government saying now?The Union Finance Ministry replied to a question on the next phase of merger of Public Sector Banks in Rajya Sabha on 24 March 2026. The reply stated that the government is currently not considering any proposal for amalgamation or consolidation of public sector banks.
Currently, there are 12 public sector banks operating in the country. RBI is in charge of regulation and supervision of banks.
Past mergersThere have been several mergers in the Indian banking sector in the past. In 2017, several subsidiary banks and the women's bank of India were merged with SBI. In 2019, Vijaya Bank and Dena Bank were merged into Bank of Baroda. Subsequently, in 2020, there was a large-scale consolidation of the banking sector with the merger of several public sector banks.

Role of RBI
RBI has an important regulatory role in relation to the process of amalgamation of banks.Mergers and amalgamations have a specific regulatory process as per the relevant provisions of the Banking Act. As per the details published by RBI, there will be stages such as shareholder approval, merger scheme scrutiny and RBI approval in respect of voluntary mergers of banking companies. Reserve Bank of India
Therefore, the “Merger of 9 Public Banks” information that is currently going viral on social media should not be considered as an official statement.It is required to be taken on the basis of statements from official sources such as RBI, Ministry of Finance or PIB.
Therefore, the “Merger of 9 Public Banks” information that is currently going viral on social media should not be considered as an official statement. It is required to be taken on the basis of statements from official sources such as RBI, Ministry of Finance or PIB.