State Bank Of India has been in news for its Merger with its own associate banks which are State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Raipur, State Bank of Travancore, State Bank of Hyderabad and also the Bhartiya Mahila Bank. The same was effective from 1st of October, 2017
. The merger of all these banks was approved back in February in 2017. With the merger of all the banks into effect makes State Bank of India has one of the highest total assets which are worth of 29 Lakh Crores
Managing Director of SBI Rajnish Kumar said,
"The merger has to be done in phases. As data are integrated, the new passbook and Cheque books would be issued. The complete integration of various banks should take 3 months
Around 10 years
ago SBI merged with State Bank of Saurashtra exactly in 2008 and two years later in 2010 they merged with State Bank of Indore. According to the merger plan, SBBJ shareholders are going to get 28 shares of SBI with the value of 1 Re. each. While SBM and SBT shareholders are getting 22 shares each of SBI.
The bank will now have over of 37 crores of customer base with a branch network of more than 24,000 branches all over India
. With a total of 59,000 ATM all over the country, SBI happens to be the biggest in terms of ATM Network.
As a part of the merger, many branches are said to be relocated which will be done in order to comfort the customers. If you are having an account in any of the merger banks then you must keep a note of the following things:
- Cheque Books and Post-Dated Cheques will be invalid:
From 1st October 2017, the Cheque books are invalid, hence all the post-dated Cheques will become invalid. All the Cheques must be reissued with the one of the new SBI one. Account holders can apply for the Cheque book via Mobile Banking, Net Banking, and ATM or by visiting the branch office.
- Electronic Clearing Service – ECS:
ECS Facility must be remaining the same despite the merger and the bank will sort the same at the back end. But there is no confirmation from SBI so you must wait for the same or ask for the information from the nearby branches.
- Mobile Banking and IFSC Codes:
All the IFSC Codes of the merged banks will be invalid and new IFSC Codes of the SBI Branch will be given. As the IFSC Codes are invalid the Mobile Banking facility will also become invalid and you will have to wait for a few days to get Mobile Banking enabled again on your handset.
- Fixed Deposits:
FD’s always have been untouched in the past also with the mergers and hence this time there will be no changes in the same.
These are all the points, which are to be known about the SBI Merger with the other 6 banks.