Union Bank of India merger What Happens to Account Numbers, IFSC Codes, Loans?

The Union Bank of India has informed the bank account holders of Andhra Bank and Corporation Bank that there has been no change in their account numbers, IFSC codes, MICR, bank branches after the merger. In an email addressed to account holders of these two banks, Union Bank of India also saidthat cash withdrawal from the ATMs of any of the three banks would not attract additional charges. All the terms and conditions with respect to the loans would continue to remain intact till the term of the given loan, it added. Andhra Bank and Corporation Bank were merged into Union Bank of India on April 1 as a part of consolidation exercise in the country’s banking space.

The government in August 2019 had announced the merger of 10 public sector lenders into four bigger and stronger banks. “Businesses and industry will benefit through increased lending capacity, with the regulatory ceiling for lending individual borrowers increasing by over Rs 1,500 crores to Rs 3,000 crores,” the government had said.

The ten public sector undertaking (PSU) banks were amalgamated into four banks from April 1. After merger, the number of public sector banks in India has currently come down to 12 from 27 in 2017. However, complete merger may take a little longer as the bank staff is working with limited strength amid the ongoing lockdown due to coronavirus pandemic.

The new 12 public sector banks include six merged banks and six independent banks. State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.

Source: BT

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