Change in Banking Laws and Rules for the customers of few commercial banks

A few of the biggest commercial banks of India, namely, Bank of Baroda, State Bank of India, IDBI, Axis Bank and Canara Bank is changing their banking laws for customers. The major impact would occur on the savings account holders (with change in cash withdrawal fees, IFSC codes, SMS alert fees amongst a few other rules. A few of the rules are elaborated below:

• Due to the merger of Syndicate bank with Canara bank, the customers of syndicate bank will receive new IFSC codes from 1st July.

• The Andhra Bank and Corporation Bank merged with Union Bank, hence the customers of Andhra Bank and Corporation Bank would be using new cheque books with enhanced security features to be issued from July 1.

• The Axis Bank SMS customers to be charged 25 paise for each SMS alert up to a limit of Rs.25. The new charges won’t be applicable to Burgundy accounts, private, priority, NRI, trust & Government accounts, defence salary accounts, staff accounts, small & basic accounts, pension accounts, select salary relationships and promotional SMS sent from Bank and OTP alerts.

• IDBI Bank charged new prices for issues of cheque books for customers from June 1.