Bank customers alert! Stop using old IFSC codes of THESE banks or face failed transactions

Bank customers should start using the new IFSC codes of Oriental Bank of Commerce, United Bank of India, Syndicate Bank, Andhra Bank, Corporation Bank and Allahabad Bank, otherwise, their transactions are all set to fail. 

According to a notification by Axis Bank to its customers, the private lender said, “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 the above banks should start sharing the new IFSC codes to ensure smooth facilitation of financial transactions. 

Why are IFSC codes changing? 

As part of a massive amalgamation plan of the Indian government, finance minister Nirmala Sitharaman had announced the merger of 10 public sector banks into four mega state-owned ones in 2019. 

While the merger came into effect in April 2020, the IFSC and MICR codes are updating from the starting of Financial Year 2022, i.e. from April 1, 2021. All the old ones are discontinued and the 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 government has merged Syndicate Bank with Canara Bank while Andhra Bank and Corporation Bank has been amalgamated into Union Bank of India. Allahabad Bank has been merged with Indian Bank.

 

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