How Bank Mergers and IFSC Code Changes Could Impact Your Customer Payments

Post the consolidation of 10 banks in 2020, the IFSC codes of some of those banks were changed this year. This development has made updating old IFSC codes in your customer’s ERP crucial for smooth payment processing.

Waiting for a payment that you were expecting long back? Chances are it may have failed due to the change in the Indian Financial System codes (IFSC) of some Public Sector Undertaking (PSU) banks.

 As part of the consolidation of 10 PSU banks, six smaller banks were merged into four bigger and stronger banks. Finance Minister Nirmala Sitharaman announced this consolidation plan in August 2019, and it went into effect on April 1, 2020. Consequently, the banks’ IFSC codes were changed on April 1, May 1, and July 1, 2021. 

Here’s a list of banks that were merged under this plan:

What you need to do to ensure seamless payments

With the new IFSC codes coming into effect, these banks will no longer honour digital payments with old IFSC codes. This will result in payment failures in normal as well as early payment procedures.

Over the past year, these banks have spread awareness about the code changes through regular customer communications. If you’ve missed them, please update the IFSC codes of the banks mentioned above in your customer’s Enterprise Resource Planning (ERP) system immediately to receive uninterrupted and timely payments. You can find the new IFSC codes for your account in these banks on their respective websites. 

For more details, get in touch with your C2FO Supplier Relationship Manager at ​​[email protected] or +91 7035 7035 93.