Published On: Fri, Aug 30th, 2019

To make India an 5 Trillion Dollars country, Nirmala Sitharaman  Builds Next generation banks by merging 10 Banks.

  • Nirmala Sitharaman has said that it is necessary to have next generation banks in the coming five years to make the country an economy of five trillion dollars.
  • Union Finance Minister Nirmala Sitharaman announced merger of 10 state-owned banks in the country.
  • After this Mahavilaya, 12 government banks will survive from the existing 27 public banks.
  • This merger will affect the customers who will have savings account or fixed deposits in these banks.
  • Customers may have to change the checkbook first and then many more changes.

New Delhi : – The Finance Minister has announced the merger of 10 banks, after which only 12 state-owned banks will be left in place of the existing 27 banks. This bank of banks will have a big impact on the customers who have savings accounts or fixed deposits in these banks.

To make India an 5 Trillion Dollars country, Nirmala Sitharaman  Builds Next generation banks by merging 10 Banks. India 24x7 News

To make India an 5 Trillion Dollars country, Nirmala Sitharaman  Builds Next generation banks by merging 10 Banks. India 24×7 News

The Finance Minister said in a press conference here on Friday that after the merger the number of state-run banks will be reduced from 27 to 12. Six small state-run banks have already merged with State Bank of India and Vijaya Bank, Dena Bank and Bank of Baroda. Thus, after the merger of SBI and Bank of Baroda, 10 state-run banks have already transformed into two big banks.

Nirmala Sitharaman has said that it is necessary to have next generation banks in the coming five years to make the country an economy of five trillion dollars.

Let us talk about the effect of these mergers : –

1. Must change checkbook

First of all, get ready to change your checkbook, because many banks are going to merge. Although existing checkbooks are valid for some time, they eventually have to be replaced by the check book of the bank the bank merged with.

2. Change in Account Number, Customer ID

You can get a new account number and customer ID. Make sure that your email address and mobile number are updated with the bank, so that you can get instant information about any change. All your accounts will be tagged with an ID. For example, if you have an account with Vijaya Bank and another Dena Bank, a customer ID will be allotted for both accounts.

3. Update details with third parties

Customers who have been allotted new account numbers or IFSC codes will have to update these details with various third party entities. These include Income Tax Department, Insurance Companies, Mutual Funds and National Pension System (NPS).

4. New ECS, SIP Instructions

After the merger, the entity must clear all Electronic Clearing Service (ECS) instructions and post dated checks. Contact your bank, fund house and insurance company and issue new ECS instructions. If needed, you have to fill the ECS related form online or through your branch. For Auto Debit or Systematic Investment Plan (SIP) you may have to fill a new SIP registration and instruction form. The same will have to be done for the EMI of the loan.

5. Local branch may be closed

Some branches of the bank may be closed and customers may have to move to a new branch. For example, your existing home branch may be closed when the acquiring bank has its own branch nearby. Keep in mind the new IFSC and MICR codes applicable to your branch as you will need these for fund transfers and other financial transactions.

Bank of Baroda, Dena and Vijaya Bank merger approved

Finance Minister Nirmala Sitharaman, while talking about new merger in banks, said that the ability to give loans from big banks increases. The merger of Punjab National Bank, Oriental Bank of Commerce and United Bank will make it the second largest bank in the country. The bank, formed by the merger of PNB, Oriental Bank of Commerce and United Bank, will have a turnover of Rs 17.95 lakh crore and will have 11,437 branches. The Finance Minister said that Canara Bank and Syndicate Bank will merge and this will make it the fourth largest public sector bank with a turnover of Rs 15.20 lakh crore.

 

A new bank consisting of three banks will start next year

At the same time, with the merger of Union Bank, Andhra Bank, Corporation Bank, it will become the 5th largest public sector bank in the country. Its total business will be Rs 14.59 lakh crore. On the other hand, merger of Indian Bank and Allahabad Bank will make it the 7th largest public sector bank with a turnover of Rs 8.08 lakh crore.