The Cabinet Committee on Economic Affairs (CCEA) in its meeting is likely to approved consolidation of 10 public sector banks into four and the merger will come into effect from April 1, 2020, Finance Minister Nirmala Sitharaman announced today.

The Union Cabinet has given a go-ahead for the merger proposal and the government has been in regular touch with these banks. There will be no regulatory issues, she said.

The merger includes the amalgamation of Allahabad Bank into Indian Bank, Andhra Bank and Corporation Bank into Union Bank of India, Oriental Bank of Commerce and United Bank of India into Punjab National Bank and Syndicate Bank into Canara Bank.

The Narendra Modi government had announced the mega-merger in August last year. After the consolidation of these banks, India will have a total number to 12 Public Sector Banks from 27 in 2017, a move aimed at making state-owned lenders global sized banks.

“The Centre has been in regular touch with these banks and there will be no regulatory issues. The banks’ merger is on course and decisions have already been taken by the respective bank boards,” Sitharaman told reporters.