As of March 1, 2023, Citibank’s consumer business in India will be transferred to Axis Bank. Axis Bank Ltd, an Indian private lender, has completed a deal to buy Citigroup Inc’s local consumer and non-banking finance businesses, effectively exiting the US lender’s credit card and retail businesses in the country. The transaction value of 116.03 billion rupees ($1.41 billion) is based on Citi’s portfolio’s closing assets, assets under management, and liabilities as of Jan. 31.
When announced in March 2022, the deal was worth 123.25 billion rupees and was Axis Bank’s largest-ever acquisition. Citi was one of the first international lenders to introduce credit cards in India in 1987, but it has since lost ground to larger players.
As part of a turnaround strategy, Citi Chief Executive Jane Fraser announced plans to exit its consumer businesses in 13 Asian and EMEA markets in 2021. The transaction is expected to increase Axis Bank’s deposit base and loan book by 7% and 4%, respectively, as well as 31% increase in its credit card customer base. Here is what will happen to Citibank customers’ credit cards, debit cards, savings accounts, NRE accounts, and home loans.
What are the changes expected to the Citi NRI bank account?
- Existing NRI deposits (NRE/NRO/FCNR) will be maintained at the current Citi Rate.
- Any new NRI deposit (NRE/NRO/FCNR) will be subject to the current Axis Bank rates.
- AXISINBB 1099 certificate issuance (to US NRIs) and reporting will be discontinued due to the revised SWIFT code for foreign currency inward and outward transactions. You can also download an Interest certificate and a Tax Deducted at Source (TDS) certificate from Citibank® Online to determine the amount of interest earned and tax deducted.
Will Citibank account information be kept the same after the acquisition?
Yes, following the acquisition by Axis Bank, Citibank accounts will remain unchanged. Customers can continue to use their Citi account with no changes to their account number, IFSC / MICR codes, debit card, chequebook, fees, or charges, and enjoy the account’s many benefits.
Will there be any changes to existing auto-renewal deposits?
Existing deposits will continue to be automatically renewed. Customers with Multi deposits of less than INR 5000 are asked to liquidate them by 28th February 2023 by visiting the branch or using Citibank Online. In the absence of a request, the Bank will credit these deposits back to the Savings Account Balance. Alternatively, you can re-book these deposits in accordance with the bank’s new limits via Citibank Online and there will be no early withdrawal penalty for such deposits.
Will the details, benefits, and features of my Citibank Debit Card change?
There will be no changes to your Citibank Debit Card, withdrawal limits, or functionality, and your existing card will continue to function normally with all benefits and features.
Will Citibank customers’ bank account information remain the same?
Customers can continue to use their Citi account with no changes to their account number, IFSC / MICR codes, Citibank Debit Card, cheque book, Fees & Charges, and enjoy the many benefits that come with it. Any changes will be communicated in advance.
Yes, following the acquisition by Axis Bank, Citibank accounts will remain unchanged. Customers can continue to use their Citi account with no changes to their account number, IFSC / MICR codes, debit card, chequebook, fees, or charges, and enjoy the account’s many benefits.
Existing deposits will continue to be automatically renewed. Customers with Multi deposits of less than INR 5000 are asked to liquidate them by 28th February 2023 by visiting the branch or using Citibank Online. In the absence of a request, the Bank will credit these deposits back to the Savings Account Balance. Alternatively, you can re-book these deposits in accordance with the bank’s new limits via Citibank Online and there will be no early withdrawal penalty for such deposits.
There will be no changes to your Citibank Debit Card, withdrawal limits, or functionality, and your existing card will continue to function normally with all benefits and features.
Customers can continue to use their Citi account with no changes to their account number, IFSC / MICR codes, Citibank Debit Card, cheque book, Fees & Charges, and enjoy the many benefits that come with it. Any changes will be communicated in advance.