Bank Account Portability

Every time you change your bank, you have to change your bank account too, which means a new account number. But no longer now. If all goes well, just like your mobile number, you will soon be able to have your old bank account number even if you change your bank.
Speaking at an event on Tuesday, Reserve Bank Deputy Governor S S Mundra batted for the introduction of bank account portability in India, and said that with the technological advancements in the payment system, account number portability has come within the realms of possibility.

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“If allowed it will a boon for Indians. The banking account portability, much like mobile number portability, will allow us to switch to other banks, if dissatisfied. This will increase the competition among banks and may lead to banks cutting cost in order to retain customers,” says Jitendra P S Solanki, CFP & Planner For Special Needs Member Families.

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However, there are hurdles to it, especially with the IT infrastructure. “With banks having different digit account numbers, the task will require large IT infrastructure to bring portability. Banks may not be ready for this. Already a few banks have shown resistance to this until some uniform account number is implemented. But there is other fear among banks, which is the frequent movement of their customers, which may increase the cost for banking services. Will have to wait for the RBI guidelines on portability to see what it will include and how it will address both side interests,” adds Solanki.

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