Starting the brand new fiscal yr 2022 i.e. from April 1, 2021 the IFSC code of Oriental Financial institution of Commerce, Syndicate Financial institution, United Financial institution of India, Andhra Financial institution, Company Financial institution and Allahabad Financial institution will change. And so the account holders of those banks for any transaction have to specify the brand new IFSC codes such that their transactions get processed easily with none failure.
In 2019, the FM Sitharaman introduced consolidation of 10 PSBs into 4 mega PSBs. The merger got here into power from April 1, 2020 and now from the brand new FY, the IFSC codes and MICR of the merging banks will turn into inoperative and as an alternative the codes of the anchor financial institution (AB) will change them.
And now here is the timeline by when the brand new IFSC and MICR codes shall apply for the totally different banks:
|Anchor Financial institution||Amalgamating Banks||Timeline when IFSC will get discontinued|
|PNB||OBC||April 1, 2021|
|United Financial institution of India|
|Union Financial institution of India||Andhra Financial institution||April 1, 2021|
|Company Financial institution|
|Indian Financial institution||Allahabad Financial institution||Could 1, 2021|
|Canara Financial institution||Syndicate Financial institution||July 1, 2021|
|Financial institution of Baroda||Vijaya Financial institution, Dena Financial institution||March 1, 2021|
The information with respect to adjustments in IFSC code has been made obtainable on the person financial institution’s web site. Say as an illustration BOB on its website said that the IFSC codes of the sooner Vijaya Financial institution and Dena Financial institution ceased on March 1, 2021. And clients have been requested to use for cheque books bearing new MICR code by March 31, 2021.
Significance of IFSC code and MICR code:
IFSC stands for Indian Monetary System Code and facilitates switch of cash in addition to tradable monetary property from one financial institution to a different by way of totally different modes of switch together with NEFT, RTGS and so on. And MICR or Magnetic Ink Character Recognition i.e. a 9 digit code helps within the sooner clearance of cheques.
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