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What Happens to Fixed Deposits in the Event of Bank Mergers and Acquisitions?
Fixed deposits (FDs) are among the most secure and reliable investment options in India, offering guaranteed returns and financial stability. However, when banks undergo mergers and acquisitions, FD holders often have questions about the safety of their investments and whether they will continue to earn the best fixed deposit interest rates promised at the time of opening their accounts. These situations can cause concern, but understanding how FDs are handled during bank mergers or acquisitions can help alleviate uncertainty. In this article, we will explore what happens to fixed deposits, including popular schemes like Shriram fixed deposit, when banks consolidate or are acquired.
Understanding bank mergers and acquisitions
Mergers and acquisitions (M&As) in the banking sector occur when two or more banks consolidate to form a single entity. This may happen to strengthen financial stability, expand market presence, or comply with regulatory requirements. For example, in recent years, India has …
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