What the Bank of Baroda mega merger means for customers

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Three state-run lenders—Bank of Baroda, Dena Bank and Vijaya Bank merged on April 1 to form the country’s third largest bank after the State Bank of India and HDFC Bank.

The consolidated bank, named Bank of Baroda, has over 9500 branches, over 13,000 ATMs, 85,000 employees and 12 crore customers.

In September 2018, the government had announced a three-way mega-merger as part of its plan to consolidate state-run banks into bigger financial institutions.

So what does the merger mean for customers of all the three banks?

- Existing accounts with Dena Bank and Vijaya Bank will continue; any changes will be notified by the banks.

- Existing ATM cards and cheque books can be used. Any changes will be notified by the banks well in advance. New cards with Bank of Baroda branding will be issued to customers of all three banks after April.

- For depositing cash or cheques, customers need to visit the branches of their bank only.

- There will be minimal changes to the existing Quarterly Account Balance limits and charges, Bank of Baroda said.

- The Reserve Bank of India, on March 30, said all branches of Dena Bank and Vijaya Bank will function as Bank of Baroda outlets from April 1. There is no change in the location of the branches. There is no plan to close any branches as of now.

- If there is a plan to shut down branches, customers that have lockers in such locations will be allocated lockers in a new branch.

- There will be no immediate changes in any terms or conditions of loans or other credit facilities. While these products will now come under the policies of Bank of Baroda, no changes will be made without prior intimation and consent of the customer.

- There will be no charges for fund transfers between Bank of Baroda, Dena Bank and Vijaya Bank using NEFT or RTGS services.

- No ATM charges will be levied for using any of the three banks. Customers can use basic services like cash withdrawal, balance enquiry, mini statement and pin change at any of the banks’ ATMs.

- Bank of Baroda said the merger has not resulted in any new service charges for customers.

- No changes have been made to the digital banking facilities of all three banks. They continue to be functional as earlier.