The Finance Minister has announced the merger of 10 banks, after which only 12 state owned banks will be left in place of the existing 27 banks. It will have a big impact on the customers who have savings accounts or fixed deposits in these banks.
|| Anjan K Samal
Union Finance Minister Nirmala Sitharaman announced merger of 10 state-owned banks in the country.
After this huge merger of Banks, 12 government banks will survive out of 27 public banks.
This merger will affect the customers who will have savings account or fixed deposits in these banks.
Customers may have to change the Cheque book first .
Union Finance Minister Nirmala Sitharaman on Friday announced the Mega Consolidation Plan of state-run banks, after which the number of state-run banks in the country will come down to 12 out of 27. This consolidation may affect many persons who have savings accounts or fixed deposits in these banks.
The Finance Minister said in a press conference here on Friday that after the merger, the number of state-run banks will be reduced from 27 to 12. Six small state-run banks have already merged with State Bank of India and Vijaya Bank, Dena Bank and Bank of Baroda. Thus, after the merger of SBI and Bank of Baroda, 10 state-run banks have already transformed into two big banks.
Nirmala Sitharaman has informed that it is necessary to have next generation banks in the coming five years to make the country an economy of five trillion dollars. Must change checkbook
First of all, get ready to change your cheque-book, because many banks are going to merge. Although existing cheque-books are valid for some time, those eventually have to be replaced by the cheque-book of the bank the bank merged with.
Next Generation PSB
| Bank to be merged with | Bank to be merged with |
| Punjab National Bank | Oriental Bank of Commerce and United Bank of India |
| Canara Bank | Syndicate Bank |
| Union Bank of India | Andhra Bank and Corporation Bank |
| Indian Bank | Allahabad Bank |
Changes in account number, customer ID
You can get a new account number and customer ID. Make sure that your email address and mobile number are updated with the bank, so that you can get instant information about any change. All your accounts will be tagged with an ID. For example, if you have an account with Vijaya Bank and another Dena Bank, a customer ID will be allotted for both accounts.
Change of Branch Address
Some branches of the local branch bank may be closed and the customers may have to go to the new branch. For example, your existing home branch may be closed when the acquiring bank has its own branch nearby. Keep in mind the new IFSC and MICR codes applicable to your branch as you will need these for fund transfers and other financial transactions.
Interest Rate
Fixed deposit rate offered by the acquiring bank on the date of official merger will be applicable. However, pre-determined interest will be available till maturity on existing fixed deposits. Similarly, the interest rate on the loan will continue as per the actual agreement. The current interest rate for a home loan will remain intact until the new entity changes the interest rate.
