Merger of Banks and its implications – Ministry of Finance

Merger of Banks and its implications for the concerned Ministries/ Departments

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Government of India
Ministry of Finance, Department of Expenditure
O/o Controller General of Accounts
Mahalekha Niyantrak Bhawan
GPO Complex, INA, New Delhi -110023

F. No. R-13002/1/2021-GBA-CGA/ 224-236

Dated: 16-03-2021

Office Memorandum

Subject: Merger of Banks and its implications for the concerned Ministries/ Departments.

Government of India, M/o Finance vide its Gazette notifications nos. GSR 153(E) to 156(E) dated 4/3/2020 announced merger/amalgamation of the following Public Sector Banks:

1. United Bank of India and Oriental Bank of Commerce have been merged with Punjab National Bank. {GSR no. 153(E)}

2. Corporation Bank and Andhra Bank have been merged with Union Bank of India. {GSR no. 154 (E)}

3. Syndicate Bank has been merged with Canara Bank. {GSR no. 155(E)}

4. Allahabad Bank has been merged with Indian Bank. {GSR no. 156(E)}

As informed by the banks, technical merger has been completed by all of the Banks involved. Due to this a need has been felt to re-notify the accreditation of the bank doing government agency business of the following Ministries/Departments facilitating smooth and timely settlement of funds with Central Accounts Section, Reserve Bank of India, Nagpur.

1. Ministry of Shipping and Road Transport – Syndicate Bank now merged with Canara Bank

2. President’s Secretariat — United Bank of India now merged with Punjab National Bank

3. Ministry of Coal — United Bank of India now merged with Punjab National Bank

4. Ministry of Finance, Department of Revenue — Allahabad Bank now merged with Indian Bank

5. M/o Law, Justice and Corporate Affairs, Department of Legal Affairs – Dena Bank now merged into Bank of Baroda

6. Lakshadweep Islands — Syndicate Bank now merged with Canara Bank

Apart from this, there may be cases where the focal point branch/e-focal point branches would change from the old bank to the new bank. It is also anticipated that after full technical merger of the banks, the government bank accounts for physical receipts and payments, accounts for e-receipts and payments, accounts for Non Tax Receipt Portals may undergo a change for PAO’s and DDOs under them. Also their IFSC/BSR/MICR codes may have changed.

All the Ministry/Departments and the Banks involved (as mentioned above) are requested to do the needful as mentioned hereunder:

1. The proposal for re-notification of the accredited bank upon amalgamation/merger of existing accredited bank on technical grounds may be sent to this office immediately.

2. Details of the new focal point branch/e-focal point branch which would do settlement with CAS, RBI, Nagpur.

3. Old and new account numbers (for both physical as well as electronic transactions) for all the PAO’s as well as DDO’s along with old/new IFSC codes, MICR codes and BSR codes.

4. The government cheques have to be reprinted from Government Security Press, Nasik due to the fact that these changes the payments/settlements which would be effective from 1st April 2021 and old cheques cannot be issued w.e.f. 1/4/2021.

5. The new bank has to share the IFSC/BSR/MICR codes of all the branches of the old banks to the Ministry/Department, PFMS and Central Pension Accounting Office as well as to this office in a MS Excel File.

6. The merger of Banks may also involve consolidation of pensioner’s papers/data lying in CPPC’s. There may also be change of focal point branch relating to CPPC etc. This matter may also be discussed by Banks with CC (Pensions).

7. An SOP on merger of banks was circulated by Banking vertical in PFMS to the Banks through this office in January 2020, September 2020 and November 2020. It has been learnt that the banks are working on the modalities laid down in SOP issued by PFMS. All the banks involved in merger may remain in constant touch with PFMS for smooth transition to next Financial Year after the merger.

8. All the DDO’s may be directed to obtain the bank details from all the officials who have their account in the merged bank due to probable change in IFSC code and/or bank account number to avoid any problem in crediting of their March, 2021 salary in April 2021.

(Sandeep R. Pai)
Sr. Accounts Officer
Government Banking Arrangement

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