Axis Bank and Citi Agreement: Know What It Means for Citi Debit and Credit Card Customers

Because the Agreement between the financial institution Axis and Citi has received the approval of the Competitors’ Commission of India (CCI), the merger has moved an inch closer to merger news. The Rs 12,325 crore deal involves merging Citi’s private lending, bank card and wealth administration companies which are centered on the prosperous section, with financial institution Axis. Here’s what that means for customers:

The deal includes switching verticals like private wealth administration as well as portfolio management and retail buyer account segments from Citi India to Axis Financial bank, and bank cards make up the main part of the agreement. Citigroup entered India in 1902 and launched the buyer banking business in 1985.

Transition interval: Lenders in March had said the transition would take 9 to 18 months with the flexibility of an additional six months. The transition price could be around Rs 1,500 crore; of this amount, Rs 1,100-1,200 crore could be paid by Axis financial institution. Citi customers can be transitioned to the Axis financial institution platform on a phased basis.

Assign vendors: After Citi’s retail banking business merges with financial institution Axis, current credit card and other business card options and benefits will either remain the same for customers or be enhanced. Axis Financial bank officials also said buyers would see no change in the people they work with at the bank, and buyer experiences would either remain the same or could be further improved.

Once the transition is complete, Citi’s retail customers will become Axis Financial Institution’s customers, and buyers will have access to Axis Financial Institution’s expertise and broader choices.

Know your buyer: After the merger, KYC will reoccur, which is the regulator’s requirement. This happens periodically. Banks may even want consent of a select type in transition processes before the closing date.

Branches: The branches will not change and they will remain the same as now. Since most of Citi’s branches are located in prime locations, Axis Financial bank said it will retain them to serve its customers.

Axis has previously stated, “It will enter Citibank’s massive and successful buyer franchise with a bouquet of attractive paying segments, which include a high-quality bank card portfolio, a successful wealth management customer base, large deposits with 81 per cent being CASA, as well as a strong customer loan portfolio. Submit the acquisition, Axis Financial bank could have 28.5 million savings accounts, over 2.3 lakh Burgundian customers and 10.6 million playing cards.

An official of the financial institution Axis, in an interview with Moneycontrol, said that the issuance of bank cards must be increased from the third quarter (October-December). “We started the year with a total CAF (car playing cards) of 9 million. The RBI (Reserve Financial Institution of India) recently issued advice on closing the cards, but if we keep that aside for a minute, I’ll be considering the total CIF at the end of the year (March 31 2023) to nearly 12 million playing cards… I think those numbers are pretty solid. Obviously, in the undetermined future, by December or March, when the Citi Wallet is added, there will be 2.5 million additional cards,” said Axis Bank (President and Head of Cards and Funds ) Sanjeev Moghé. .

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