- Date : 06/03/2023
- Read: 4 mins
What to know as Axis Bank acquires Citibank’s consumer business
Axis Bank’s acquisition deal, which was announced last year in March 2022, has now been completed as the bank has taken over Citibank’s consumer business segment. As Axis Bank has acquired a large bouquet of Citibank’s offerings, the latter’s consumers are in a fix. They don’t know how their existing Citibank accounts would be affected.
So, here’s a quick look at the different consumer concerns and Citibank’s clarifications against the same –
Existing bank account concerns
Existing consumers of Citibank are wondering what will happen to their existing accounts now that Axis Bank has acquired them. Citibank replied to this query that customers can continue using their existing accounts without any hassles and changes. If things change in the future, Axis Bank will inform them duly.
Access to Axis Bank ATMs
The transfer of Citibank’s business happened on 1st March 2023. Customers would be allowed to use Axis Bank ATMs after this date. The number of free withdrawals available with their Citibank accounts would remain applicable. The same would be charged at Axis Bank ATMs if there were chargeable services.
‘Global Banking Privileges’ for Citibank’s credit card users
Citibank offered the ‘Global Banking Privileges’ to eligible credit card users, which allows a range of benefits. Some of them included the following –
- Service of opening a bank account on international relocation.
- Deals and discounts at restaurants, hotels, retail shops, etc., for frequent international travelers.
- International airport lounge access facility.
- Emergency cash of up to $10,000 while traveling.
While Citibank offered these privileges to select customers, Axis Bank would not. The privileges would cease to apply. Cardholders looking for similar privileges must apply for the corresponding Axis Bank credit cards that offer these benefits.
Customers who had invested in mutual funds, AIF (Alternative Investment Funds), or PMS (Portfolio Management Service) with Citibank can continue their investments which would be transferred to Axis Bank.
Moreover, in the case of insurance policies, no change would be applicable. Instead of Citibank, Axis Bank would service the insurance plans bought earlier through Citibank.
NRI account changes
Existing NRI accounts like the NRE, NRO, or FCNR accounts would continue at the same rates and charges. However, if NRIs make new deposits, such deposits would earn interest rates as specified by Axis Bank. Moreover, the new SWIFT code would be AXISINBB.
Existing home loans would continue unaffected. However, the home loan interest rate might be affected if you availed of a Treasury Bill–Linked Rate (TBLR) from Citibank. As Axis Bank links its home loans to the repo rate, the home loan interest rate would be recalculated per the repo rates of Axis Bank.
Consumers with credit card disputes with Citibank are advised to clear the dispute as quickly as possible. Once the transition is completed, getting a proper resolution might prove time-consuming and difficult. Moreover, if any outstanding payment is due, your credit score might also get negatively affected.
So, if you are an existing Citibank customer, know what to expect as Axis Bank has taken over the bank’s business. While most accounts would continue unaffected, there might be some changes that you should take notice of. So, know these changes and how they affect your existing accounts.