Preparation to become the second largest bank in the country after SBI! Central Bank and Indian Overseas Bank will become one, what will happen to your account and money?

A very big news is coming from the world of banking, which is directly related to crores of customers of the country. The government is preparing to merge two big public sector banks – Central Bank of India and Indian Overseas Bank.

If this merger happens, then the new bank formed by combining these two will be the second largest government bank in the country after SBI.

But as soon as the news of merger comes, thousands of questions start rising in the minds of common customers like us – “What will happen to my account number?”, “What will happen to my FD?”, “Will my check book become worthless?”

Don’t panic! Let us understand in very simple language what effect this merger will have on your banking.

What will be the effect on your account, check book and money?

1. Will my account number and customer ID change?

Yes, it can change. When two banks merge, customers of the smaller bank are usually shifted to the larger bank’s system. In such a situation, you can get a new account number and new customer ID.
But don’t worry: the bank will give you full time for this and will inform you in advance through SMS and email.

2. Will old checkbooks and passbooks become useless?

Yes, after a certain time. After the merger, you will have to get new checkbooks and passbooks bearing the name and logo of the new bank. However, the records of all the old transactions recorded in your old passbook will remain safe.

3. What will happen to IFSC and MICR codes? (This is most important!)

This will definitely change. IFSC code is most important to transfer money online. After merger the IFSC code of your branch will also change.
What to do: If you have given your bank account for income tax, mutual fund (SIP), insurance policy or anywhere else, then you will have to go there and update the new IFSC code, otherwise your money may get stuck.

4. What will happen to my FD and loan EMI?

There will be no impact on this.

• You will continue to get the same amount of interest on your old FD as promised.
• The EMI of your old loan will also remain the same and will continue on the same terms and conditions.
  Yes, if you make a new FD or take a new loan, the interest rates of the new bank will be applicable on it.

5. What will happen to my ATM/Debit card?

Your existing ATM and debit card will continue to work till its expiry date. When it expires, you will get a new card with the name of the new bank.

Why is the government doing this merger?
Its objective is to create some big and strong banks in the country, which can compete at the international level. This reduces the expenses of banks and they are able to provide better services to the customers.

What do you have to do?
You don’t need to do anything right now. Just keep an eye on the SMS and emails coming from your bank and do not pay attention to any kind of rumours.