Effects of PSU Bank merger on customers from April 1 | Fusion - WeRIndia

Effects of PSU Bank merger on customers from April 1

Effects of PSU Bank merger on customers from April 1

Apart from State Bank Group, eight public sector banks merged last year. These include Vijaya Bank, Dena Bank, Oriental Bank of Commerce, United Bank of India, Corporation Bank, Andhra Bank, Syndicate Bank, and Allahabad Bank. While the banks in which another bank is merged is known as anchor bank, the bank which gets merged with anchor bank is known as amalgamating bank.

From this financial year, i.e. April 1, 2021, several things like account number, IFSC and MICR codes, cheque books etc. will be changed. In other words, the merger will impact the above-mentioned things from April 1. If you are a customer of any of the above banks, then contact your bank officials and know beforehand all details to avoid delay in performing transactions.

If you are the customer of amalgamating bank, then from April 1, your old cheque book will not be valid. You have to get new a cheque book from the anchor bank. For instance, if you are a customer of Vijaya Bank or Dena Bank, then you have to get a new cheque book from the Bank of Baroda (BOB). If you have given any postdated cheques, then you have to replace them with newer ones. However, some banks like Syndicate Bank provided their customers with extra time to get their new cheque books till June 30 as per the guidelines of the RBI.

As IFSC and MICR codes will change for some banks, get the updated codes. Otherwise, you will not be able to make a money transfer. Besides, they also can affect the ECS process. So, transfer a sufficient amount to your loan account beforehand.

If you have a loan from amalgamating bank, the anchor bank will streamline the process with updated terms and conditions. Or else contact your bank to know the update.

The interest rates on fixed deposits will not be changed mid-way. But, the rate may vary upon their renewal.

Also, many banks are allowing their customers to use the old cards till expiry. After that, they will issue new cards.

Image Credit: Ganesh Dhamodkar / CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Corporation_Bank_Chandrapur_before_merger.jpg

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