Amid the chaos and confusion created by the nationwide lockdwon, which has been imposed to contain the spread of highly contagious Novel Coronavirus COVID-19, bank mergers ? involving 10 nationalised banks ? took place on April 1, 2020 as per the Bank Merger Schemes issue by the Government of India on March 4, 2020.
As per the Schemes, Allahabad Bank got merged into Indian Bank and Syndicate Bank into Canara Bank, while Andhra Bank and Corporation Bank got merged into Union Bank of India and Oriental Bank of India and United Bank of India into Punjab National Bank (PNB).
Accordingly, branches of Allahabad Bank have become branches of Indian Bank, branches of Syndicate Bank have become branches of Canara Bank, branches of Andhra Bank and Corporation Bank become branches of Union Bank of India (UBI) and branches of Oriental Bank of India and United Bank of India have become branches of Punjab National Bank from April 1, 2020.
However, the customers of banks that got merged into other banks may wonder, what would be the effect of the mergers of their bank for paying bills, regular investments through systematic investment plan (SIP) and other regular investments as well as regular pay ins like salary, interests, dividends, withdrawals through systematic withdrawal plan (SWP) etc.
Many account holders also opt for group insurance schemes offered by banks in tie-up with different insurance companies. So, what would happen to their insurance cover once the bank from which they took the cover gets merged with another bank?
Similarly, it is also a matter of concern that what would happen to the holders of Prime Minister’s Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) policies if the banks got merged have tie-up with different insurance companies for the insurance plans?
While the amalgamation process may take longer than expected as banks are working with minimum strength, customers of the banks involved in mergers are a confused lot today as they fail to reach out to banks or get their quarries answered.
Making things easier for the account holders, the Union Bank of India (UBI), in its mail to account holders of Andhra Bank and Corporation Bank, has informed that during this transition period there has been ?
- No changes in account numbers, IFSC codes, MICR, bank branches for customers
- Cash withdrawal from ATMs of any of the three banks is not levying any additional charges
- All existing terms and conditions pertaining to your loan still continuing until the life cycle of the loan
So, during the merger process, existing mandates would continue as it is and a customer may use ATMs of all merged banks without paying any additional charges, while the existing terms and conditions pertaining to loans would remain as it is even after the merger of Andhra Bank and Corporation Bank is completed with UBI.
