Beginning the new fiscal year 2022 i.e. from April 1, 2021 the IFSC code of Oriental Bank of Commerce, Syndicate Bank, United Bank of India, Andhra Bank, Corporation Bank and Allahabad Bank will change. And so the account holders of these banks for any transaction need to specify the new IFSC codes such that their transactions get processed smoothly without any failure.
In 2019, the FM Sitharaman announced consolidation of 10 PSBs into 4 mega PSBs. The merger came into force from April 1, 2020 and now from the new FY, the IFSC codes and MICR of the merging banks will become inoperative and instead the codes of the anchor bank (AB) will replace them.
And now here's the timeline by when the new IFSC and MICR codes shall apply for the different banks:
|Anchor Bank||Amalgamating Banks||Timeline when IFSC will get discontinued|
|PNB||OBC||April 1, 2021|
|United Bank of India|
|Union Bank of India||Andhra Bank||April 1, 2021|
|Indian Bank||Allahabad Bank||May 1, 2021|
|Canara Bank||Syndicate Bank||July 1, 2021|
|Bank of Baroda||Vijaya Bank, Dena Bank||March 1, 2021|
The data with respect to changes in IFSC code has been made available on the individual bank's website. Say for instance BOB on its site stated that the IFSC codes of the earlier Vijaya Bank and Dena Bank ceased on March 1, 2021. And customers have been asked to apply for cheque books bearing new MICR code by March 31, 2021.
Importance of IFSC code and MICR code:
IFSC stands for Indian Financial System Code and facilitates transfer of money as well as tradable financial assets from one bank to another via different modes of transfer including NEFT, RTGS etc. And MICR or Magnetic Ink Character Recognition i.e. a nine digit code helps in the faster clearance of cheques.