Viral Message: 15 banks to be closed & merged into 5 major banks. If u have any account in these banks, save your cash and forward this msg to all.

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Fact Check by Ayupp -  Not fully true

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Viral Message Verification-

A news is going viral in social media that 15 banks will be closed and they will be merged into 5 major PSB banks. People are scared to deposit money in banks.

The proposal has been raised for this merger, the second part of the news seems to be a fake one. The Cabinet has approved a framework for consolidation of Public Sector Banks. A ministerial Panel will be setup to supervise merger proposals which will come from the bank's boards. There will not be any loss of deposit amounts. All the deposits will be moved to merge bank accordingly.

The country’s biggest merger of SBI’s associate banks with SBI, has made certain other PSB banks also to take up the same route. Following 5 banks have submitted their merger proposal to Government

  1. Punjab National Bank
  2. Canara Bank
  3. Union Bank of India
  4. Bank of India
  5. Bank of Baroda

Its well known fact that Indian Banking sector in India has been suffering for the past few years because of the mounting bad debts problems.The budget sanctioned for capital infusing by Government is also  not sufficient for the banks. Not only will the banks have a higher asset strength but also increase in capital base which would enable the banks to give out bigger loans.

The list of banks that are expected to be merged are as below:

  • Punjab National Bank
    1. Allahabad Bank
    2. Corporation Bank
    3. Indian Bank
    4. Oriental Bank of Commerce
  • Canara Bank
    1. Indian Overseas Bank
    2. Syndicate Bank
    3. UCO Bank
  • Union Bank of India
    1. Central Bank of India
    2. Dena Bank
    3. IDBI
  • Bank of India
    1. Andhra Bank
    2. Bank of Maharashtra
    3. Vijaya Bank
  • Bank of Baroda
    1. Mahila Bank
    2. Punjab & Sind Bank
    3. Union Bank of India

Names of banks might also change after the merger.

About The Author

Chetan Sharma is an Indian fact-checker and news writer, writing news for Ayupp since 2014.

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