IFSC codes, MICR codes of these PSU banks will change from April 1&
New Delhi: If you are a customer of eight public sector banks (PSB), which are getting merged, you need to know about some important changes coming into effect from April 1. IFSC codes of these banks will change soon. Account holders in these banks are required to start using the new IFSC codes from the specified dates to ensure that their financial transactions don’t fail/get stuck.
The eight banks that are going for the merger include Vijaya Bank, Corporation Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, United Bank of India, Allahabad Bank and Dena Bank. Depending on the bank, there will be a change in account number, cheque book, cards, Indian Financial System Code (IFSC) and Magnetic Ink Character Recognition Code (MICR).
For the unversed, as part of banking consolidation announced in 2019, Oriental Bank of Commerce and United Bank of India were merged into Punjab National Bank; Allahabad Bank with Indian Bank; Syndicate Bank was merged with Canara Bank and Andhra Bank and Corporation Bank with Union Bank of India. These mergers came into effect in the current fiscal year, but banks are yet to complete the process of integration.
The merger will be effective from April 1, 2021 following that, chequebooks and passbooks of the merged banks will become invalid. From today onwards, the account numbers of customers of these banks, which were merged with other big lenders over the last two years, will change.
Alerting their customers, PNB and Bank of Baroda had earlier stated that the existing chequebooks of OBC, United Bank of India, Vijaya Bank, and Dena Bank will get discontinued from April 1, as they are valid only till March 31, 2021. Similarly, the account holders of other merged banks will also not be able to use their existing chequebooks and passbook from April 1.
Some banks could offer more time to customers as the Reserve Bank of India has allowed some banks to continue with the old chequebooks for another quarter or two. For example, Syndicate Bank customers can use their chequebooks until 30th June.
If you are a customer of any of these banks, you will need to track your banks’ developments to know when can you continue using the chequebooks. In case you have given post-dated cheques, you will need to replace them with a new one as soon as you get the new chequebook.
The IFSC and MICR code will change for some banks and will remain the same for others. For banks like Union Bank of India, the account number has not changed. Only the IFSC code has changed. You will again need to check with your bank to get clarity on what has changed and what has not. Accordingly, you will need to change your ECS instructions for loans and other payments such as life insurance and mutual fund investments.
If you have taken a loan from the merging banks, the anchor bank will streamline the process. For some, there could be updated terms and conditions and rates. If you are not intimated yet, follow up with the bank. As far as fixed deposits are concerned, banks will not change the interest rates mid-way. But on renewal, the anchor bank may align the rates with theirs.
With most of these merged banks, customers can continue to use their old cards till expiry, following which the new bank’s cards would be issued.