The proposed merger of Bank of Baroda(BoB), Vijaya Bank and Dena Bank will impact not just their balance sheets and the banking system, but also their retail customers. Read on to know the procedural changes you are likely to deal with, if you bank with any of these lenders.

Account number, customer IDs may change 
You may get a new account number and customer ID. Make sure your email ID and mobile number is updated with the bank so that you receive official intimations on allotment of new accounts instantly. Moreover, all your accounts will be tagged to a single ID. For instance, if you have an account with Vijaya Bank and another with Dena Bank , the two accounts will be allotted a single customer ID.

It is also possible that the new entity will add another layer of security. “While the customer ID will be common across multiple accounts with the same bank, a different user ID can be generated for the joint holder so that he can access only the relevant account,” says Vivek Iyer, Partner, Risk Assurance, Pwc India.

Details with third-parties will need to be updated
Customers who are allotted new account numbers or IFSC codes will have to update these details with various third-party entities: Income tax department for tax refunds, insurers to get maturity proceeds, mutual funds to get the redemption amounts and the National Pension System (NPS), among others. “Customers can update their new account details online through their policy account or visit the branch to submit the account updation form,” says Anil Kumar Singh, Chief Actuarial Officer, Aditya Birla Sun Life Insurance.

Fresh ECS, SIP mandates
The post-merger entity will have to honour all electronic clearing service (ECS) mandates and post-dated cheques. Make enquiries with your bank, fund house and insurance companies and issue fresh ECS mandates, if required. You will have to fill up the ECS mandate forms online or through your branches. In case of auto-debits for systematic investment plans (SIP), you may have to submit fresh SIP registration-cum-mandate forms. The same will have to be done for loan EMIs. Customers are usually allowed to use balance cheque leaves and existing cheque books for 6-12 months.

Local branch may close
Customers will have to deal with the branch rationalisation exercise. For instance, your existing home branch could shut shop if the new acquiring entity has its own branch in the vicinity. Keep an eye on the new IFSC and MICR code applicable to your branch and account as you will be required to quote it for funds transfer and other financial transactions. “In case of SBI Associates-SBI merger, the account numbers did not change, but the home branch was changed and a new branch code was applicable,” says Gopal Ravi Kumar, Advisor, Consumer VOICE.

Deposit, lending rates to be decided by merged entity
“The fixed deposit rate applicable will be the one offered by the acquiring bank on the date of the official merger,” says Virat Diwanji, President, Retail Liabilities and Branch Banking, Kotak Mahindra Bank. However, existing FDs will continue to earn the interest promised earlier, till maturity. Similarly, loan agreements, too, will continue as per the original agreements. For home loans, the contracted rate will be applicable till the new entity revises rates as per the prevailing interest rate scenario.

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