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

The Press Information Bureau's Fact Check unit has shot down a document circulating widely on social media that claimed the Centre had notified a scheme to merge nine public sector banks into three larger entities. 

The fake document was styled to resemble an official Gazette of India notification, issued by the Ministry of Finance. What it proposed was the amalgamation of nine public sector banks into three main entities.

The notification claimed that Indian Bank, Bank of Maharashtra and Central Bank of India were being absorbed into State Bank of India under a new "SBI Group" identity. It further alleged that Union Bank of India, Bank of India and Punjab & Sind Bank would be merged into Punjab National Bank, while Canara Bank, Indian Overseas Bank and UCO Bank would be folded into Bank of Baroda.

A recurring pattern

The document appears to have surfaced first on messaging platforms and social media feeds before gaining traction on X, where it triggered enough confusion for the government to step in with a formal clarification. It is the latest in a recurring pattern: a similar fabricated graphic claiming SBI, PNB and Canara Bank were being merged went viral in June this year, and PIB had to debunk that one too. 

The recurrence points to a broader vulnerability. Especially since it is taking away from an actual instance in 2019, when the government consolidated 10 public sector banks into four, cutting the total number of PSU lenders from 27 to 12. That history appears to lend these fake documents just enough credibility to spread quickly, especially among bank customers and employees who have lived through actual mergers before.

PSU mergers a long-drawn process

Government fact-checkers note that any real merger of public sector banks would require a structured process involving the Finance Ministry, the Reserve Bank of India and parliamentary or regulatory clearances. For now, officials maintain there is no such proposal on the table. The government has urged the public to treat any claim of this nature with caution until confirmed via official channels such as the RBI's website or the Finance Ministry's own handles.