Bank customers ought to begin using the brand new IFSC codes of Oriental Bank of Commerce, United Bank of India, Syndicate Bank, Andhra Bank, Corporation Bank and Allahabad Bank, in any other case, their transactions are all set to fail.
According to a notification by Axis Bank to its customers, the non-public lender mentioned, “Axis Bank has disabled IFSC of Oriental Bank of Commerce (ORBC) and United Bank of India (UTBI) as per RBI. Do not initiate any transaction to the said IFSC codes as they will be rejected. Please change IFSC or de-register beneficiaries in the online channels.”
Account-holders of all of the above banks ought to begin sharing the brand new IFSC codes to make sure clean facilitation of monetary transactions.
Why are IFSC codes altering?
As half of a large amalgamation plan of the Indian authorities, finance minister Nirmala Sitharaman had introduced the merger of 10 public sector banks into 4 mega state-owned ones in 2019.
While the merger got here into impact in April 2020, the IFSC and MICR codes are updating from the beginning of Financial Year 2022, i.e. from April 1, 2021. All the old ones are discontinued and the brand new codes are being granted by the anchor banks.
Here’s how the merger works: Oriental Bank of Commerce and United Bank of India have been merged with Punjab National Bank (PNB). Meanwhile, the federal government has merged Syndicate Bank with Canara Bank whereas Andhra Bank and Corporation Bank has been amalgamated into Union Bank of India. Allahabad Bank has been merged with Indian Bank.