New Delhi, Business Desk. Eight state-owned banks are going to be merged with effect from April 1. The eight banks that are going to be merged include Vijaya Bank, Corporation Bank, Andhra Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, Including United Bank of India, Allahabad Bank (Dena Bank) and Dena Bank.
If you are a customer of any of these banks, then you will need to do some urgent work. After the merger, the account number, checkbook, card, Indian Financial System Code (IFSC) and MICR Code (MICR) can be changed depending on the bank concerned. Let us know in detail.
Checkbooks of banks that are merging will not be valid from April 1. You will have to get a new checkbook issue from Anchor Bank (which is merging). For example, the checkbook of Oriental Bank of Commerce and United Bank of India will be valid only till 31 March. These two banks are merging with Punjab National Bank. In such a situation, customers of these two banks will have to issue a new checkbook from PNB.
Some banks may also give some relief to the customers in the case of checkbooks, as the RBI has allowed some banks to continue the old checkbooks for the next one or two quarters. As an example, Syndicate Bank customers can use their checkbooks until 30 June.
To know how long you can use old checkbooks, you have to be aware of the information provided by your bank. However, if you have given the checks for a further date, you will have to replace them with the new check as soon as you get the new checkbook.
If possible, you should take an updated statement of your account before the merger i.e. print the passbook and keep it safe with you.
The merger will change the IFSC and MICR codes to some bank. At the same time, some banks will remain unchanged. Some banks have not changed their account numbers like Union Bank of India, only the IFSC code has changed. Each bank has a different migration. You will need to contact your bank to find out what will change and what will not change. Accordingly, you will need to change your ECS instructions for loans and other payments such as life insurance and mutual fund investments.
If there is a lack of clarity and the ECS bounces, be sure to transfer the money online to your loan account so that the lending bank does not blame you.
Deposits and loans
If you have taken a loan from the merging bank, the anchor bank will streamline the process. There may be new update rules, new terms and new rates for some banks. If you are not yet informed about this, get in touch with the bank.
As far as Fixed Deposits (FD) are concerned, banks will not change interest rates here. But upon renewal, Anchor Bank can align the rates with itself.
Customers of most banks can continue their old cards till the expiry date. After this, new bank cards will be issued.