What can the bank mergers announced by the Finance Minister do to your account?
Don't panic. The actual merger process will take some time. At the end of it, branches may be merged, especially if they are on the same street. Follow these simple steps.
Published: 30th August 2019 05:56 PM | Last Updated: 30th August 2019 07:30 PM | A+A A-
Finance Minister Nirmala Sitharaman. (Photo | Shekhar Yadav)
The Government on Friday announced a series of mega-merger of state-run banks – what does it mean for your savings account, fixed deposits or loans?
Do not panic. The actual merger process will take some time - may extend to a year or more. At the end of it, branches may be merged, especially if they are on the same street.
However, when this happens you will be allocated a new IFSC Code. Your account number is likely to also be changed. So do keep a lookout.
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The interest rates negotiated for loans and fixed deposits will remain the same. In case the loans have been given on floating rates they were anyway subject to possible change. Savings rates may change to align with the rate offered by the bank with which your bank is being merged. The papers connected with your loan or FD with the bank will simply be transferred to the new branch. Everything else will remain the same.
However here are the things you should watch out for :
IFSC Code: Each bank and each branch has its unique IFSC code. If your bank or branch is being merged this will change. So be sure to get to know what the new one is.
Account Number: Your account number may be changed if the branch is being merged. So do check if that happens.
Cards & Cheque books: New Credit & debit cards and cheque books are likely to be issued if banks are merged, especially if branches are also merged.
Standing Instructions on EMI payments, interest receivables, card payments and bill payments: Remember to again reiterate your standing instructions on interest payments or receivables, card payments and bill payments from your account or else the new system may show a blank as far instructions from you are required.
Lockers: Banks are supposed to contact you about lockers being shifted with advisories that you take our belongings. In case they are unable to contact you or you are unable to comply with their requests in time, they are supposed to move your locker with the belongings under police escort. But still, its best to play safe and take out your belongings before the locker is shifted to new premises.
