Mumbai: The Government merger of 10 banking into four banks to strengthen the country’s banking system came into effect on Wednesday.

The merger combines Oriental Bank of Commerce and United Bank into Punjab National Bank, to create a single lender managing businesses worth Rs 17.95 lakh crore. Similarly, Syndicate Bank stands merged with Canara Bank; Andhra Bank and Corporation Bank with Union Bank of India, and Allahabad Bank with Indian Bank. The big consolidation in the country’s public banking sector is part of the government’s plan of making India a $5-trillion economy by 2025.

The merger scheme of the banks the four banks are Punjab National Bank, Canara Bank, Union Bank and Indian Bank that will assume their operations of six others in addition to their own. The branches of the six lenders will operate as part of the four anchor banks, according to the RBI. In turn, customers and depositors of the merged banks will be treated as customers of the four banks.

Trade unions of bank officers have, however, been opposing the merger. Only last week, they wrote to the Prime Minister seeking to defer the merger schemes due to the coronavirus-induced lockdown. Last year, trade unions protested against the mergers stating that the move will impact jobs, disrupting operations at some branches. The government has maintained that the merger will not cause job losses. Vowing to clean up the banking sector, the government has said that the merger will strengthen state-run banks, and reposition them to take the economy to the $5-trillion mark.