4 more government banks of the country will disappear, know what will happen to your account

Once again, sounds of a major change are being heard in the country’s banking system. If you also have a bank account with Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI), or Bank of Maharashtra (BoM), then this news is going to affect you directly.

The government is preparing to merge these small public sector banks into bigger and stronger banks of the country. NITI Aayog has recommended this, the aim of which is to make India’s banking system stronger than before and ready to compete with the banks of the world. If this proposal is approved, these four banks themselves will cease to exist.

Why is the government taking this step?

Having many small banks increases the government’s expenses and handling bad loans (NPA) also becomes a big challenge. There will be many benefits from merging these banks into one big bank:

• Banks will become stronger: Their ability to give loans will increase.
• Expenses will reduce: Work will be done under the same management.
• Better service to customers: Technology and facilities will improve.
• Work will speed up: Decisions can be taken quickly.

Even before this, between 2017 and 2020, 4 big banks were created by merging 10 government banks, after which the number of government banks in the country reduced from 27 to 12.

So now which government banks will survive in the country?

If this mega merger is completed, then in future the country will have only 4 big government banks Will remain only:

1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of Baroda (BoB)
4. Canara Bank

The most important question: What will be the impact on you and your account?

There is absolutely no need to panic about this news. Your money will be completely safe, but you may have to do some running around.

• New Checkbook and Passbook: You will have to get a new check book and passbook of the bigger bank into which your bank will be merged.
• New IFSC/MICR Code: You will get a new IFSC and MICR code for your account, which you will have to update at various places (like SIP, insurance policy, etc.).
• A little paperwork: Some bank forms may have to be filled.

However, banks will try their best to make this process easy for the customers. As far as bank employees are concerned, the government has assured that there will be no negative impact on anyone’s job.

This merger is expected to be completed by the financial year 2026-27, but preparations for it have already started.