Indian Government Refutes Fake PSU Bank Merger Claims

Sep 17, 2026

82 min

Sep 17, 2026 09:31

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

## Viral Merger Claim Debunked

The Indian government's Press Information Bureau (PIB) has dismissed a widely circulated fake document that suggested a merger of nine public sector banks. The document, styled to look like an official Gazette of India notification, falsely claimed that the Ministry of Finance had announced the consolidation of these banks into three larger entities.

## Details of the False Claim

According to the bogus notification, Indian Bank, Bank of Maharashtra, and Central Bank of India were to be merged into the State Bank of India under a new "SBI Group." It also alleged that Union Bank of India, Bank of India, and Punjab & Sind Bank would join Punjab National Bank, while Canara Bank, Indian Overseas Bank, and UCO Bank would be absorbed by Bank of Baroda.

## Government's Response

The fake document gained traction on social media, prompting the government to issue a formal clarification. Officials emphasized that any real merger would involve a detailed process requiring approvals from the Finance Ministry, Reserve Bank of India, and possibly parliamentary or regulatory bodies. Currently, there is no such proposal under consideration.

## Historical Context

This incident follows a pattern of similar misinformation, including a previous false claim in June about mergers involving SBI, PNB, and Canara Bank. The spread of such rumors is partly fueled by the memory of actual bank consolidations in 2019, when the government reduced the number of public sector banks from 27 to 12.

## Public Advisory

The government advises the public to verify such claims through official channels like the RBI's website or the Finance Ministry's communications before accepting them as true.

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