NEW DELHI: In a major development in the banking sector, eight banks will undergo some prominent changes from April 1.
As per reports, after the merger of eight banks with other bigger lenders last year the cheque book and pass book will become invalid from the next month. Moreover, the account holders may also need to change their account numbers.
These eight banks are - Vijaya Bank, Corporation Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, United Bank of India, Allahabad Bank and Dena Bank.
Customers of the above-mentioned banks will need to get a new cheque book and passbook issued as the ones they are currently having will become invalid from April 1, 2021, onwards.
The customers of United Bank of India and Oriental Bank of Commerce (OBC) were informed by the Punjab National Bank (PNB) that their existing cheque books will be invalid from next month. The PNB further directed the account holders of these banks to get fresh copies issued and also find out the IFSC and MICR code.
It needs to be mentioned here that the account holders of the aforementioned banks also need to update their account details such as mobile number, address, name of the nominee, etc.
As per the new protocols, the customers will have to switch to a fresh cheque book and passbook issued from the financial institutions with which their former banks had merged. Moreover, after having access to the new cheque book and passbook, account holders should update their banking details on the various financial instruments.
The merger of public sector lenders into four larger and stronger banks was announced by the government in August 2019. Accordingly, Dena Bank and Vijaya Bank were merged with Bank of Baroda, while the merger of the Oriental Bank of Commerce (OBC) and United Bank of India with PNB was completed on April 1, 2020. Among others the Syndicate Bank merged with Canara Bank, Andhra Bank and Corporation Bank merged with Union Bank of India, Allahabad Bank merged with Indian Bank.
Ten PSBs were to merge into four bigger banks. This was the biggest consolidation exercise in the history of the banking sector, after which the number of PSBs in India dropped from 27 in 2007 to 12 in 2021.