Here's how India's bank merger will impact you
After the merger’s finale process, the customers holding bank account, FD, investment, loan EMI on those particular banks may face some changes. With the decision of merging 10 PSB Banks on last Friday of August, Finance Minister-Nirmala Sitharaman made everyone stunned. If you are also one of the customers of banks which are merged then this report is for you…It may impact your banking life. Read out the lowdown and know what might get change after the merger of 10 PSB Banks.
What may change for existing Bank Customers?
• Once the process of merger will get over the existing customers of those banks having savings account, Loan EMI account, investment may face some changes related to existing bank holders.
• Customers may get new account number, customer ID. Every bank holds a different customers ID and account number. Some banks have 16 digit account number, and some have 12 digit. So, after the merger these numbers may change.
• Remember, the server of every bank is not the same. It would really be difficult for all the merged banks to first make a single server and then work. Due to different server, updation of the server will be the most important part of work.
• Customer may get new Debit card, Credit card, Cheque book, New Locker system number.
• The bank account numbers through which you file return of your tax also have to update
• As single server platform will form so, in your savings account you need to update the KYC once again. Also, the account of your Mutual Fund, SIP and NPS will have to be updated. For that you have to do some paper work and fill one form to update the new details once again.
• If you had done any investment then for new bank details you have to fill one form. For loan EMI and SIP account you may need to update the new details.
• After the merger banks may change the IFSC code. Customers may have to use the new IFSC code for any new banking use.
• The old branch where the customer is holding his or her account may close due to new server and updation. Customer may have to go to the new branch assigned to them after the merger process gets over.
• It is important to note that if you had taken any loan, then the MCLR will not change because all the banks have their own MCLR fixed. It depends on the banks as how they will manage the MCLR after the merger.
• Also, the interest rate at which he or she had taken the home loan, personal loan, vehicle loan will not change. Customer will have to pay the same interest as per the rules.
• For customers doing job will have to update their salary account as well.
• The interest of your Fixed Deposit (FD), Recurring Deposit (RD) will not change or increase.
Banks Merged:
1. Punjab National Bank (Anchor Bank) + Oriental Bank of Commerce + United Bank of India
2. Canara Bank (Anchor Bank) + Syndicate Bank
3. Union Bank of India (Anchor Bank) + Andhra Bank + Corporation Bank
4. Indian Bank (Anchor Bank) + Allahabad Bank
Each and every bank holds different version and core banking system. So, after the merger the change and updation is must for all banks to get into the new system. To give some relief to the existing customers of the merged banks existing cards, code, number, all bank related work will be valid and not change for few days even if the process gets over. Remember that the new server will take some time to merge the new rules accordingly. So, after the merger if you face any difficulty related to banking work then do contact your nearest branch or bank official immediately to avoid any fraud or mistake.
