What Axis Bank's acquisition of its consumer biz means for Citi's customers

Products such as home loans and credit/debit cards will undergo no change; but in case there are changes, the customer will be duly informed

On Wednesday, Axis Bank, India’s third largest private sector lender, completed the acquisition of Citibank India’s consumer business and the consumer business of its non-banking finance arm Citicorp Finance (India) Ltd for Rs 11,603 crore. With this deal, Citi’s credit cards, retail banking, wealth management, and consumer loan businesses, and the consumer business of Citicorp Finance (India) Limited will stand transferred to Axis Bank.

Business Standard explains what this acquisition will mean for Citibank's retail customers. Edited Excerpts:

Will there be a change in the account number?

Customers having bank accounts with Citibank can continue to use their Citi account without any changes in account number, IFSC/MICR codes, debit card, cheque book, fees & charges and continue to enjoy the many benefits of their accounts.

What changes will take place with the account?

Citibank customers will now get higher interest rates on savings bank accounts in line with Axis Bank rates. They will also get a revised SWIFT code for foreign currency inward and outward transactions.

Will there be a change in relationship manager?

The existing Relationship Manager (RM) will continue to service the respective customers account and will be there to support them to see through this transition.

Will there be any change in my debit card/credit card details, benefits and features?

According to the information put out by Citibank on its website, there will be no change in your debit card and withdrawal limits, and your existing card will be functional as is, with all benefits and features. Further, reward points on Citi debit cards will continue to accrue and remain available for redemption. There will be no change to the earnings ratio and redemption process.

Credit card users will continue to enjoy the benefits and privileges that were available to them as Citi customers. The value proposition remains unchanged. But in case there is any such change, cutomers will be duly informed. Further, there will be no changes in the reward points accrual and redemption process.

What will happen to home loans availed by Citibank’s customers?

If the loan has been fully or partially disbursed and the customer has consented to transfer it to Axis Bank, then it would be assigned to Axis Bank. There will be no change in the interest rate prevailing on the loan. If the interest rate of the loan is variable, it will continue to move in accordance with the changes announced in the benchmark rate to which it is linked, in line with repricing reset cycle applicable on loan.