Citibank's consumer business in India will be transferred to Axis Bank, as of March 1, 2023. India's third-largest private sector lender has completed the acquisition of the consumer businesses of Citibank India and its non-banking finance arm, Citicorp Finance (India) Ltd, for Rs 11,603 crore, according to a notification to the stock exchanges on March 1, 2023.
Citibank India has announced on its website that its consumer banking customers will now be served by Axis Bank. The consumer business of the multinational bank includes credit cards, home loans, personal loans, and retail banking, among others. ET Wealth jots down all the available information about the transition process. Let's find out how Citibank India's accounts, debit and credit cards, ATMs, services, and charges will work going forward, as per the FAQs by the Citibank India.
1) I have an account in Citibank India. Will my account details remain the same after the acquisition?
Yes, your Citi account will remain the same after the acquisition by Axis Bank. "You can continue using your Citi account without any changes in account number, IFSC / MICR codes, debit card, chequebook, fees, and charges and continue to enjoy the many benefits of your account," Citibank said.
2) What changes can I expect related to my Citi account after the transfer date, i.e., March 1, 2023?
Two changes Citibank India customers can expect after the transfer date, i.e., March 1, 2023:
a) Higher interest rate on savings bank account in line with Axis Bank rates.
b) Revised SWIFT code for foreign currency inward and outward transactions– AXISINBB.
3) Will I be able to access Axis Bank ATMs after the Transfer Date i.e., March 1, 2023? What will be the ATM Charges applicable on the use of Axis Bank ATMs?
Yes, you will be able to access any Axis Bank ATM as your own after the transfer date, Citibank India said.
The number of free transactions currently available to you at Citibank ATMs will be extended to Axis Bank ATMs also. Similarly, any charges currently applicable over and above free transactions at Citibank ATMs will be charged on transactions at Axis Bank ATMs also.
4) Will there be any change to existing deposits booked as auto-renewal?
There will be no change to the existing deposits getting auto-renewed.
Citibank earlier asked the customers to liquidate the multi-deposits that are booked for less than Rs 5000 by February 28, 2023. If you have not done it already, these deposits will be credited to the savings account balance by the bank. Alternatively, you can re-book these deposits as per the new limits defined by the bank through Citibank Online(http://www.citibank.co.in/). There will be no premature penalty charged for such deposits, the bank said.
5) Will there be any change in my debit card details, benefits, and features?
There will be no change in your debit card or withdrawal limits. Do remember that your existing card will be functional as is with all benefits and features.
6) Will I continue to earn reward points on spends made with my Citi debit card and redeem them?
Reward points on your Citi Debit Cards will continue to accrue and remain available for redemption. There is no change to the earning ratio and redemption process.
7) Will there be any change in interest rate, credit limit, billing cycle, fees, rewards, and redemption process for credit cards after the transfer to Axis Bank?
The credit limit on your Citi credit card will remain the same without any changes. There will be no change in the billing cycle or statement generation for your Citi credit card.
Further, there will be no change in the interest rate or any other charges applicable to the Citi credit card after the transfer date. You will be duly informed of all relevant changes with adequate advance notice, the bank added.
Citibank India's customers must note that there will be no changes in the reward Points accrual and redemption process for your credit card.
8) Will there be any changes in the credit card bill payment?
The bank has asked the customers to continue to make payments through existing modes, at present. The customers will be informed in advance if there are any changes to the repayment plan.
9) Will Citigold Global Banking privileges be offered?
Various global banking privileges like access to Citigold and Citigold Private Client lounges worldwide, emergency cash, home connect, relocation account opening service, Citigold status portability, and Citigold credit portability will cease as on the transfer date.
10) I have a Citi NRI bank account, should I expect any changes after the transfer date, i.e., March 1, 2023:?
Citibank India said that the existing NRI Deposits (NRE/NRO/FCNR) will continue as is at Citi's rate after the transfer date. Do note that Any new NRI deposit (NRE/NRO/FCNR) will be as per the prevailing Axis Bank rates.
The SWIFT code for foreign currency inward and outward transactions will be revised to AXISINBB. 1099 certificate issuance (to US NRIs) and reporting will be discontinued. As an alternative, you can download the interest certificate and tax deducted at source (TDS) certificate from Citibank Online to determine the amount of interest earned and the amount of tax deducted respectively.
11) What will happen to my home loan or property power term loan account?
If your loan is fully disbursed or partially disbursed and you have consented to transfer it to Axis Bank, the same will be assigned to Axis Bank. The same is in line with the loan agreement duly executed which has a specific clause on assignment/securitisation and entitles Citi to assign a customer’s loan.
12) Will the interest I pay today on my home loan change?
There will be no change to the interest rate prevailing on your loan.
If the interest rate on your loan is variable, it will continue to move following the changes announced in the benchmark rate to which it is linked, in line with the repricing reset cycle applicable to the loan. Any change will be notified with prior notice, Citi bank said.
13) Will there be any change in the benchmark rate for my loan with Citi after the transfer of the loan to Axis Bank?
There is no immediate change in the benchmark rate on your loan. If your loan is linked to Treasury Bill Linked Rate (TBLR), the same will now be moved to a repurchase agreement (REPO), the Axis Bank team will contact you post the assignment of the loan with the process and modalities as applicable. Do remember that there will be no change to the interest rate on the loan.
If your loan is benchmarked to Citibank Mortgage Prime Lending Rate (CMPR), Base rate, or Marginal Cost Lending Rate (MCLR), the same will not undergo any change.
In case of any change during the transition, you will be updated with due notice.
14) Will a new loan agreement be signed between me and Axis Bank and will there be a stamp duty levy?
There is no need to enter into a new agreement with Axis Bank and you will not be required to pay additional stamp duty. If there is any change, you will be updated and advised accordingly.
15) Will there be any changes in service charges for existing loan accounts post Transfer of business?
There will be no changes in service charges for existing loan accounts. Any changes in the same will be informed in advance, to avoid any inconvenience.
16) Do I need to give a fresh mandate for standing instruction for payment of loan instalments?
No, the fresh mandate will not be required for existing customers.
17) What happens to my demat account under Citibank N.A. DPID – IN300685?
The ownership of this DPID will change to Axis Bank. However, DPID and demat account numbers will remain unchanged
You can continue to place transactions for your demat account through branches using the DI slips that have been issued to you. Any change in this regard will be duly communicated to you in advance. You can also continue to use the SPEED-e facility for your transactions.
18) I hold mutual fund holdings/portfolio management service/alternate investment funds (“AIF”), what changes should I expect?
Your investments will be transferred to Axis Bank (ARN 0019). You can continue to access your investment portfolio and transact in your investment account through branches/relationship managers/Citibank online and mobile banking
Do note that your existing investor risk rating will continue to be valid till its expiry date. The process for renewing your risk rating or making changes also continues to remain the same.
Further, you will get access to research reports/insights/product information, and investment communication in line with Axis Bank’s house views, policies, and standards to help you stay updated.
19) Will the insurance policies taken through Citi be transferred to Axis Bank?
You will continue to enjoy policy benefits as before provided all due premiums are paid as and when due. The
insurance coverage provided by the Insurer will continue as is.
20) Once the policy is transferred, will the same set of services, coverages, benefits, and premiums continue?
a) Yes, post-transfer of your existing Citi relationship to Axis Bank, you will continue to avail of the same set of services that are currently available through Citi.
b) There will be no change in the premium being paid as a result of this transition. Any change in premium will be subject to the policy conditions which will be informed in advance.
21) I have purchased Sovereign Gold Bonds through Citi, what will happen to those?
Your receiving office will be transferred to Axis Bank by RBI, the public debt office for all physical Sovereign Gold Bonds. You can contact branches for any transaction/service requests.
For Sovereign Gold Bonds that are in dematerialised form, the holding will continue in the same demat account. You can contact your DP for any transactions/service requests.
Key points to note
1) You can continue to use the Citi Mobile app and Citibank online after the transfer date
2) CitiPhone and your relationship teams will be there to support you
3) You can continue to visit existing Citibank branches (to be branded as Axis Bank branches after the transfer date)
Connect with Experts - Wealth creation made easy
As a seasoned financial expert with a comprehensive understanding of the banking industry and its dynamics, I'll delve into the intricacies of the Citibank consumer business acquisition by Axis Bank in India. My extensive knowledge in finance enables me to provide a detailed analysis of the transition process, addressing key concerns raised in the article.
1. Background of the Acquisition:
- Axis Bank has successfully acquired the consumer businesses of Citibank India and Citicorp Finance (India) Ltd for Rs 11,603 crore.
- The acquisition includes credit cards, home loans, personal loans, and retail banking services.
2. Account Details and Operations:
- Existing Citibank India account holders need not worry about changes in their account details after the acquisition.
- Account numbers, IFSC/MICR codes, debit cards, chequebooks, fees, and charges will remain unchanged.
3. Changes in Interest Rates and SWIFT Code:
- Customers can expect a higher interest rate on savings accounts, aligning with Axis Bank rates.
- The SWIFT code for foreign currency transactions will be revised to AXISINBB.
4. ATM Access and Charges:
- Access to Axis Bank ATMs will be available, with the same number of free transactions as in Citibank ATMs.
- Charges applicable beyond free transactions at Citibank ATMs will also apply at Axis Bank ATMs.
5. Deposits and Auto-renewals:
- Existing deposits set for auto-renewal will continue without any changes.
- Customers were advised to liquidate multi-deposits under Rs 5000 by February 28, 2023, which will be credited to the savings account balance.
6. Debit and Credit Cards:
- Debit card details, benefits, and features will remain unchanged.
- Existing credit card limits, billing cycles, fees, rewards, and redemption processes will also stay the same.
7. Home Loans and Property Term Loans:
- Fully or partially disbursed loans with customer consent will be assigned to Axis Bank.
- No change in the interest rate on existing loans; changes will be communicated with advance notice.
8. Demat Accounts and Mutual Funds:
- Ownership of Citibank N.A. DPID will shift to Axis Bank, but account numbers remain the same.
- Mutual fund holdings, portfolio management services, and alternative investment funds will be transferred to Axis Bank.
9. Insurance Policies and Sovereign Gold Bonds:
- Insurance policies will continue with unchanged benefits if due premiums are paid.
- Sovereign Gold Bonds will be transferred to Axis Bank; both physical and dematerialized holdings remain valid.
10. Post-Transition Services:
- Customers can continue using the Citi Mobile app and Citibank online.
- Citiphone and existing relationship teams will provide ongoing support.
- Existing Citibank branches will be rebranded as Axis Bank branches.
In summary, the acquisition by Axis Bank ensures a seamless transition for Citibank India customers with minimal disruptions to their banking services and products. The detailed FAQs provided by Citibank India offer transparency and clarity regarding the changes, assuring customers of a smooth experience post-acquisition.
