From April 1, 10 big public sector banks of the country will be combined to form 4 big banks. Punjab National Bank (PNB) will merge with Oriental Bank of Commerce and United Bank. The bank formed after this merger will be the second largest bank in the country. Syndicate Bank will merge with Canara Bank. It will become the fourth largest bank in the country after the merger. Union Bank will merge with Andhra Bank and Corporation Bank. The bank formed after the merger will be the fifth largest state-run bank in the country. Indian Bank and Allahabad Bank will become the seventh largest bank in the country after the merger. We are telling you that if your account is in any of these banks, then what will be the effect on you.
What will be the impact on bank accounts after the merger of banks?
The merger of banks will have a direct impact on savings account, current account and other types of accounts. After the merger process is complete, these account holders will have to go to the bank and replace their existing passbook with the new passbook. The government has directed all the banks involved in the merger to ensure that there will be no difficulty in banking services during the merger process.
Will the bank account numbers change after the merger?
If the account number of the merged banks has equal digits, the account number may not change. But if there is a difference in the number of digits of the account numbers, they will definitely change.
Will the branches of banks also change?
After the merger process is completed, if the branches of one of the banks involved in it are found in more than one area, then some branches may be closed. On the other hand, if banks have branches around a city, they will also be merged.
What will be the effect on the old check book?
After the merger process, the names of 6 of the 10 banks involved will be changed and the checkbook with the name of the old bank will also be canceled. A new checkbook will be issued in his place. However, six months will be given to do so.
Will the bank’s IFSC also change after the merger?
The IFSC (Indian Financial System Code) numbers of different branches of merging banks will not be immediately affected, but they will definitely change and change completely after the merger process is completed.
What will happen to old debit and credit cards?
This process will not affect the debit and credit cards issued to customers from different banks involved in the merger and they will continue to operate as before. However, integrated banks can issue new debit and credit cards to customers under the new branding.
What will be the impact on FD and RD of banks?
The consolidation of banks will also have an impact on the interest rate they are paying on various deposit schemes. The FD-RD interest rates of pre-merger customers will not be affected, but the interest rates for new customers will be the same as the banked ones after consolidation.
Will there be any change in loan rates?
There will be no change in the old rates of various types of loans such as home loans, vehicle loans, education loans, personal loans and gold loans.
Do bank details have to be updated at different places?
Customers of the bank affected by the merger will have to update their new account numbers and details of IFSC, including income tax, insurance company, mutual funds everywhere. Details will also have to be updated in SIP and EMI.