Mega merger of PSBs: Here is how it will impact bank account holders

Here’s a look at what the merger of PSBs means for the account holders:

Finance Minister Nirmala Sitharaman on Friday announced mega merger of 10 state-run banks to form four larger public sector banks (PSBs).

Sitharaman said Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged to form the second-largest public sector bank with the business of Rs 17.95 lakh crore.

Also, Canara Bank will be merged with Syndicate Bank to form the fourth largest Public Sector Bank with a business of Rs 15.20 lakh crore.

Union Bank of India will be merged with Andhra Bank and Corporation Bank to become the fifth-largest public sector bank now, she said at a press conference in New Delhi.

On the other hand, Indian Bank will merge with Allahabad Bank to form the seventh-largest Public Sector Bank with a business of Rs 8.08 lakh crore.

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While the move will consolidate businesses of these banks, the move will also impact customers in some ways.

Here’s a look at what the merger of PSBs means for the account holders:

1. Cheque books

The merged bank entity will issue new cheque books. But you don’t have to panic as you can still use your existing cheque books for some time.

2. Debit/credit cards

After merger, the new PSB will issue fresh debit and credit cards for its customers. But you don’t need to panic as you can use your existing cards for now and you will be given enough time to exchange them with new ones.

3. Account number/IFSC codes

The new bank will have new IFSC codes for all of its branches. As you will become account holder in a new entity, your account number will also change. you will have to update these details for auto-debit and auto-credit services like bill payment and salary credit.

4. Fixed deposits

Your fixed deposits will move to the merged bank which means that you may have to do some kind of paperwork. The interest rates will, however, will remain unchanged.

5. Savings account interest rate