Cheque Books, IFSC Code Of These PSU Banks Won’t Work After April 1; Merger Comes Into Force
Account holders of 8 Public Sector Banks going in for a merger need to beware of potential complications.
The concerned 8 banks are Vijaya Bank, Corporation Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, United Bank of India, Allahabad Bank and Dena Bank.
The following changes will be determined by each bank.
Account holders of any of the banks will have their chequebook rendered invalid from Apr 1.
In order to get a fresh cheque book one will have to go to the anchor banks ie. the main bank into which others are getting merged.
One can look up for updates on such changes on the individual banks website.
For eg. cheque books held with Oriental Bank of Commerce and United Bank of India will become invalid on Mar 31.
The customer needs to go to the anchor bank here which is Punjab National Bank.
However the RBI has allowed for some banks to grant more time to their customers. The window of original chequebook retention could be extended for 1 or 2 more quarters.
An example is of Syndicate Bank whose customers can hold on to their chequebooks till June 30.
It is advised that the customers request and preserve an updated statement of their account.
Debtors from the merging banks can rest easy since the anchor bank will streamline the process here.
Again, one must check with their bank regarding possible changes to terms and conditions and rates.
Interest rates on fixed deposits will not change mid-way. But when this is renewed the anchor bank could impose their own rates.
Card holders will be able to keep their old cards till its expiry date, post which the anchor banks’ cards will be issued.
Certain details will also have to be re-entered such as one’s phone number, address, nominee name and so on.
Bank of Baroda subsumed Dena Bank and Vijaya Bank on 1 April 2019.
Punjab National Bank, as already mentioned, has absorbed Oriental Bank of Commerce (OBC) and United Bank of India
Canara Bank has taken in Syndicate Bank.
Indian Bank has taken in Allahabad Bank.
Union Bank of India now comprises the union of Andhra Bank and Corporation Bank.
The number of public sector banks now stands at 12, a steep fall from 27 in 2017.
Other bank items that could see a change include account number, cheque book, cards, Indian Financial System Code (IFSC) and Magnetic Ink Character Recognition Code (MICR).