State Bank of India (SBI) has been a much loved public sector bank over the time frame. With chairman as Arundhati Bhattacharya, SBI is growing at an enormous rate. Recently SBI came into the picture for its announcement of the SBI merger with its subsidiaries. This SBI merger was done to increase the productivity of the bank and also be able to serve common people efficiently.
What is the SBI merger?
SBI has merged with two major associate banks before. In 2008, SBI merged with State Bank of Saurashtra and in 2010 SBI merger took place for State Bank of Indore. Many financial experts believe this time the SBI merger was a political move. Despite the accusations, Arundhati Bhattacharya has clearly stated that there has been no political push for the merger. Also, the SBI merger won’t cause any major disruption in the banking for the people. The data integration shall be completed by the end of April for the merged banks.
SBI merged with 5 of its associate branches on 1st April 2017. The five banks which merged with SBI are- State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT). Also, Bharatiya Mahila Bank merged with SBI.
Changes after the SBI merger
- First, post the SBI merger the bank now has 370 million customers, around 24000 branches, and nearly 59,000 ATMs.
- Also, there are no major changes in rules and regulations. The minimum average balance of INR 5000 in metros and INR 3000 in urban cities remains intac
- Finally, post-merger, SBI’s asset size should go up to Rs 28.6 lakh crore as on March. SBI is on its way to catch up with the competitors like HDFC Bank and ICICI bank.
- Currently, the IFSC codes of the merged banks will remain the same but are likely to be changed from July 2017.
FAQs for the merged bank customers
Should I register again post the merger?
There is no need to register. You can continue using your same user account details as before.
Will I get the same net banking facilities as before?
Yes, all SBI net banking facilities are similar. Thereby, you shall be able to use the same facilities.
Will the account numbers, cheque books, ATM card and passbook be valid after the merger?
As of now you can use the same account details. These might replace in three months time.
Are there any changes in service charges?
Yes, there will be a service charge levied on NEFT/ RTGS transactions after data level merger.
Will there be change in the name of the branch?
Some branch names have already changed. If the merged bank as well as SBI present in same location, older branch will retain its name. Moreover, SBI will provide a new branch name other.
Will the merger affect the banking rates?
Yes. Post the merger, SBI will charge as per the rules to all accounts.
If a customer has account in SBI as well as the merged bank, will the accounts be made into a single account?
No. The accounts will be under a single Customer Information File (CIF). The customer can request to merge the accounts, if required.
Will SBI consider the application of loan submitted to one the merged bank?
Yes. The loan process will happen in the same way. There might be a few documents you should resubmit.
Will the prepaid cards to the corporate account holders be applicable?
Yes. Also, the cards will function the same way and you can do top up through online mode.
Finally, for more queries, you can click here.
If this SBI merger was a good decision or a horrendous mistake, only time can tell.