Introduction

Due to recent mergers, the Indian Financial System Code (IFSC) of your United Bank of India (UBI) account may have changed. This article aims to guide you through the impact of such changes and steps you can take to ensure that funds are transferred correctly.

IFSC Code Changes in Bank Mergers

Recently, the merger of PNB UBI and OBC banks has resulted in changes to the IFSC codes of UBI accounts. Typically, when a bank undergoes a merger, the old IFSC codes become inactive. This means that transactions using the old IFSC code may fail or be returned.

It is crucial to provide the new IFSC code to anyone sending you money. In addition, you should check with your bank for specific guidance on handling transactions during the transition period. Banks often have procedures in place to manage such scenarios.

IFSC Code Validity and Branches

Although the IFSC code is unique for each branch under the core environment, its inactivity is determined by the bank's operations rather than just the branch code. Even if the IFSC code corresponds to a different branch, you will still receive the funds credited to your account. However, transactions made with the old IFSC code may not go through.

Handling Transfers with the Old IFSC Code

No, you cannot receive funds if the transaction is made using the old IFSC code. Since the bank has been migrated, transfers to the old IFSC code may not be successful. You must always use the newly provided IFSC code for any transactions. If you are uncertain about the new IFSC code, you should contact your bank for confirmation.

For example, in the case of the State Bank of India's internal mergers, where associate banks merged, the old IFSC codes were valid only for a limited period. Once the merger was complete, the old IFSC codes became invalid, and any transactions sent using them would fail.

What to Do if the Transaction Fails

While you may receive the funds eventually, if the transaction fails, the amount will be credited back to the sender's account. You can then use the new IFSC code to transfer the funds back to your account.

It is important to note that this scenario applies when the IFSC code of your account has been updated due to a merger. If your account was with UBI before the mergers, it is unlikely that your IFSC code would have changed. However, it is best to wait for an official update from your bank for confirmation.

Conclusion

Changes to the IFSC code due to bank mergers can cause temporary confusion and inconvenience. By following the steps outlined in this article, you can ensure that transactions are processed correctly and smoothly. Always ensure to use the latest IFSC code provided by your bank to avoid any issues in transactions.

Key Points Recap:

Provide the new IFSC code to any sender. Check with your bank for specific guidance. Transactions using old IFSC codes may fail.