The Reserve Bank of India (RBI) has delisted six state-owned banks from the second schedule as a result of a merger with other Public Sector Undertaking (PSU) Banks. The following are the banks delisted by the central bank, i.e., RBI: Syndicate Bank, United Bank of India, Andhra Bank, Oriental Bank of Commerce (OBC), Corporation Bank, and Allahabad Bank.
RBI takes a huge step by delisting these banks from the second schedule of the RBI Act
The Oriental Bank of Commerce (OBC) and United Bank of India merged into Punjab National Bank (PNB) on getting approval; Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank. The decision of delisting these banks was taken following their merger.
Now, we have seven large Public Sector Banks (PSBs), and five smaller ones after consolidation. The central bank, i.e., the reserve Bank of India (RBI) stated that these six banks were delisted from the second schedule following the merger of those banks with other PSU Banks with effect from April 01.
Banks listed in the second schedule of the Reserve bank of India (RBI) are called Scheduled Commercial Banks. These banks are usually private, foreign, and nationalized banks operating in India that carry out the regular banking business and banking services.
The Reserve Bank of India (RBI) restating a crucial point mentioned in the notification that they have advised that Syndicate Bank has been excluded from the Second Schedule to the RBI Act, 1934 with effect from April 01, 2020, since it has ceased to carry on banking business with effect from April 01, 2020, vide Notification DOR.No.Ret.BC.57/12.01.001/2019-20 dated March 27, 2020, which is published in the Gazette of India (Part III – Section 4) dated September 26 – October 02, 2020.
In India, about 27 public sector banks were functioning in the year 2017, which gradually have now fallen to 12 in 2020.