RBI Confirms the Great Indian Banking Merger

MUMBAI: Despite the strong opposition by various banks, the Reserve Bank of India (RBI) has finally decided to merge five banks from April 1 into the State Bank of India (SBI). All branches of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT) will function as branches of the State Bank of India from April 1.

Customers, including depositors of these banks will be treated as SBI customers, with effect from April 1. The city has a divisional office of SBH, from where administration of 135 branches from Nanded, Pawar and Latur district is done. Now, the office will be shifted to Aurangabad and it will be then connected to Beed and Osmanabad district. The SBI branch now working at New Mondha will be shifted to Shivaji Nagar.

Only one branch of the State Bank of Patiala working at Tara Singh Market will be shut down and the customers of the bank will be merged into the SBI. It is said that this merging of the banks will prove beneficial to the customers by increasing in the rate of interest on fixed deposits amounts. This will also increases the number of branches of SBI to 70 in the district. It is also expected to prove beneficial in granting loan to the farmers.

Presently, the bankwise in number of branches is SBI 24, SBH 44, State Bank of Patiala one, the State Bank of Bikaner & Jaipur 1. But, the district has no branch of the State Bank of Mysore and the State Bank of Travancore.