State Bank of India (SBI) is taking all measures to ensure that customers of five of its associate banks which are being merged with the parent organisation will face minimum hassles due to the merger process.
“For customers of associate banks, we have ensured that they will have minimum possible dislocation. As of now, whatever cheque books they were using, they can continue to use the same as we have made an arrangement with the RBI for it. The new cheque books will also be made available to them soon after the data merger,” SBI managing director (Associate and Subsidiaries) Dinesh Khara told Deccan Herald.
Besides using the same old IFSC code for the time being, the RBI also permitted the customers of associate banks to use the same online banking, and the same ATM card. “We have been permitted by the RBI for concurrent use of these things for three months from the date of merger but we are confident that we will be able to do it within a month or so, to ensure that all people get new cheque books,” Khara added.
According to Khara, home loan customers of associate banks will be given an option to shift to SBI rates, if they wish to do so, at a pre-determined charge. “For home loan account holders of associate banks, there will be some kind of offer made to convert on SBI’s rates by paying a one-time fee which we are offering to our customers. They can also choose to remain at the same rates if they wish to do so,” Khara said.
Interest rates which are emanating from contracts, for instance, when it comes to fixed deposits (FDs), the rates that have been offered for the tenure of the FD by the associate bank will remain. From April 3, whatever new products will be sold to them, they will be as per SBI's rates, Khara added.
“For customers of associate banks, we have ensured that they will have minimum possible dislocation. As of now, whatever cheque books they were using, they can continue to use the same as we have made an arrangement with the RBI for it. The new cheque books will also be made available to them soon after the data merger,” SBI managing director (Associate and Subsidiaries) Dinesh Khara told Deccan Herald.
Besides using the same old IFSC code for the time being, the RBI also permitted the customers of associate banks to use the same online banking, and the same ATM card. “We have been permitted by the RBI for concurrent use of these things for three months from the date of merger but we are confident that we will be able to do it within a month or so, to ensure that all people get new cheque books,” Khara added.
According to Khara, home loan customers of associate banks will be given an option to shift to SBI rates, if they wish to do so, at a pre-determined charge. “For home loan account holders of associate banks, there will be some kind of offer made to convert on SBI’s rates by paying a one-time fee which we are offering to our customers. They can also choose to remain at the same rates if they wish to do so,” Khara said.
Interest rates which are emanating from contracts, for instance, when it comes to fixed deposits (FDs), the rates that have been offered for the tenure of the FD by the associate bank will remain. From April 3, whatever new products will be sold to them, they will be as per SBI's rates, Khara added.
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