with 27 public sector banks including the second largest pnb being merged and reduced to 12 almost every other individual who has a savings account or fixed deposit with a public sector bank is likely to be impacted the finance minister in a press conference held in august 2019 said that the 27 public sector banks existing in 2017 will be reduced to 12 after the mergers announced are implemented merger of six smaller psbs with state bank of india and the merger of vijaya bank dena bank with bank of baroda has already taken place therefore 10 public sector banks have already been reduced to two larger ones ie the postmerger sbi and postmerger bob the finance minister nirmala sitharaman in her press briefing said that the creation of nextgeneration banks was imperative for india to become a 5 trillion economy in the next five years here is how you are likely to be impacted by this move1 get ready to change your cheque books as the various banks get merged while the existing cheque books may remain valid for sometime ultimately they will be replaced with the cheque books of the merged entitythe nextgen psbsanchor bank amalgamating bank punjab national bank oriental bank of commerce united bank of indiacanara banksyndicate bankunion bank of indiaandhra bank corporation bankindian bankallahabad bank2 you would have given your bank account numbers and ifsc codes for various financial transactions auto credit of dividends via ecs autocredit of salary auto debit of various billscharges etc unless these accounts are seamlessly merged into the financial system of the new merged bank you would be required to change the details of your bank given for these purposes a couple of years when five associate banks of state bank of india sbi were merged ifsc codes and names of 1300 branches were changed the banking behemoth has changed the names and ifsc codes of branches located in major cities such as mumbai new delhi bengaluru chennai hyderabad kolkata and lucknow those who had autodebits running with these banks like systematic investment plans sips in mutual funds were impacted this could be an issue that accountholders of the banks that will be merged now might face 3 creditdebit cards issued by the merging banks may have to be exchanged for those of the merged entity although the former are likely to remain valid for the interim period to ensure no disruption in services4 paperwork and keeping financial trail of fixed deposits made will increase a bit as these will be transferred into the merged bank5 it is however not clear what will happen to the interest rates of those who have loans running with these banks as the mclr rates are different for different banks 6 shareholders of the the publicly listed banks will be impacted how much the respective shareholders will be impacted will be known once the swap ratios are announced 6 a plus point is that the branch network would become larger so access