Indian government fact-checkers debunk viral claim of nine PSU banks merger

The Press Information Bureau's Fact Check unit has debunked a viral document claiming the Indian government planned to merge nine public sector banks into three larger entities. This false document imitated an official Gazette of India notification, suggesting the absorption of Indian Bank, Bank of Maharashtra, and Central Bank of India into State Bank of India, Union Bank of India, Bank of India, and Punjab & Sind Bank into Punjab National Bank, and Canara Bank, Indian Overseas Bank, and UCO Bank into Bank of Baroda.

The Ministry of Finance categorically stated that the notification did not originate from their office. This is the second such fabricated document to circulate, following a similar one in June that alleged the merger of SBI, PNB, and Canara Bank. The pattern suggests a recurring vulnerability, likely fueled by the historical context of the 2019 consolidation of ten PSBs into four, reducing the total number of public sector banks from 27 to 12.

The reality of past mergers may lend a veneer of credibility to these false documents, especially among bank employees and customers familiar with such changes. However, government officials confirm that no current proposals exist for another wave of PSB mergers. They urge the public to verify any such claims only through official channels like the RBI's website or the Finance Ministry's official channels.