1. Account number:
For some banks that have merged in the past, there was no change in the account number for the bank customers say for in the case of Union Bank of India, only the IFSC code changed. Also, there have been known instances of bank account mapping in respect of ECS i.e. the bank has checked with the entity with which you have set the ECS or electronic clearing settlement such as for SIP, utility bill payment etc. for change in the ECS i.e. matched their ECS for the old ECS.
The transition in the case of Bank of Baroda has resulted in a change in the account number for customers. But the system has been made so such that any remittance in the old account number will automatically be transferred to the account carrying a new number
Know what you need to do in respect of bank account number, IFSC and MICR: Here the onus shall be on the bank customer to modify or update previously given ECS mandates and also update such details with various entities including tax department, EPFO, insurers or brokers for that matter.
2. Fixed deposits:
These deposits are in fact contracts for some pre-defined period and any change in structure of the bank will not result in any interest change for you. Likewise, you can continue with the deposit until maturity at the same rate, irrespective of whether the deposit rate at the merged entity is lower or higher.
3. Cheque books:
For the merging entities like in the case of Oriental Bank of Commerce (OBC) and United Bank of India that merges with PNB, the cheque books issued by the former two banks shall become inactive from April 1, 2021. Consequently, the merged entity or the anchor bank would issue new cheque books to customers of merging banks.
But for certain others like say in the case of Syndicate Bank there has been extended a special leeway by the RBI and hence their customers can continue using its cheque book until June 30. And similarly there is different timeline in case of say Indian Bank as to until when their cheque books can be used. So in case yours is a merging bank then on issues related to cheque book, you need to check with the bank only for any clarification thereon.
What you need to do here
- In case if you have issued post-dated cheques to any institution or person, you would need to recall those and issue fresh ones.
- For your convenience and record keeping, you need to have with you e-statements as well as updated passbook such that in case of any integration error, you have the supporting for your funds.
- And in case you are a proprietor concern or want personalized cheque book, you would need to contact the Anchor bank.
Similar to FD contracts, home loan is also an agreement between the borrower and lender and in the event of bank merger there shall be no change on the previously stipulated terms. And over the past one year, the rates of the merging bank and the anchor bank have converged to a common point, with no difference in respect of the external benchmark lending rate (EBLR).
Now if your loan term has a review clause then the rate of interest of the acquiring or anchor bank may apply. And in the merger process, customers will be given the flexibility to switch to the EBLR.
In the case of most merging banks, customers can continue to use their old credit or debit or debit cum ATM cards until expiry, post which the new card by the anchor or merged entity would be issued.
The salary account will be operational as previously post the merger. Card will also be functional until the expiry.
Note if your workplace deals with other banks too, it shall be your responsibility to share with it the new IFSC for all future remittances.