RBI announces bank account portability

[Sushubh]

Bank account number portability: Biggest move post demonetisation; you may soon be able to switch banks and keep your account number

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.

I am not sure how this is going to help a lot of people. People do not cut cheques in account numbers. Your bank account number alone does not allow incoming payments. Maybe things would get clear as more information is released.

“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.

And of course... Banks are not going to be happy.

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.

Mobile numbers are at least unique. Bank account numbers are not. And I assume not all banks have moved on to longer digit account numbers. This seems whole lot more complicated than mobile number portability. Of course, government never really managed to implement DTH portability so there's that.

 

[Navjot Singh]

RBI to make bank accounts portable; soon, you can switch banks without changing a/c No.—Here's how it will work

Bank Account Portability: Bank account portability under RBI’s Payments Vision 2028 could soon allow customers to switch banks without changing their account number. The proposed system will ensure seamless transfer of linked services, reduce dependency on banks, and make switching as easy as...

www.zeebiz.com

 

[Kaiju404]

This new Bank Portability if implemented will be such a blessing good lord

 

[Sushubh]

Please highlight some of the benefits.

 

[Kaiju404]

Please highlight some of the benefits.

Biggest will be to migrate to any bank of your wish if current one had seemingly poor int rates or other services that too without redoing KYC man I am rn stuck with this bank that I want to move on but thinking about the hassle of going through mandatory long processes I am just carrying it.

 

[Sushubh]

so how long does kyc take? 5 minutes? and you would still need to check if all your connections are successfully transferred? ifsc code changes so online payments etc would remain broken? opening a new bank account is essentially a 15 minute process with forced aadhaar authentication. and upi makes it easy to have a unified ID while changing bank accounts in backend.

 

[Kaiju404]

Bhai in my bank people have to forcefully visit the home branch and physically be in long queues I might not name the bank but that is such a hassle they most of the times have poor internet services, things get stuck and I can go on there tagline Server failed so sorry please be in queue

 

[Sushubh]

you can have more than on bank accounts. you can have 10. you can transfer money out from a shitty bank online. the only benefit i suppose is that you do not have to deal with bank officials to close your account formally? not sure if bank account number portability can be done without visiting your old bank branch. remains to be seen. i can imagine that someone would have to approve the transfer after checking if there are no dues pending for stuff like locker etc. i mean i get it, some people might actually have a good reason. but i can't imagine this to be a thing that would be used by a lot of people especially individuals. banking is already quite messy. one would be incredibly stupid to port his bank account that has a lot of money or connected FDs or essential loans. one mess from either of the bank and you lose access to your money. one emi missed and good luck.

 

[Sushubh]

few years ago, i transferred my PPF account from one branch of BoB to another. it worked fine in the end. but it required multiple trips to both the branches and the scare of losing access to the account were real during the process. i am sure things would be fine. but this is not just a mobile number. this is your bank account.

 

[Kaiju404]

Bhai for my bank it took similar to your trips like they are uber slow, my recent kyc took 5 to 6 months even I had to write letter to manager and scare them using ombudsman. I get it your scary experience but my side is worse too. Atleast user will have a choice. KYC takes 15 10 mins yeah in some alternate universe or maybe I ended up with a shitty bank. Wish we as customers as citizens of India deserved better lets see how things unfolds bhai although I don't believe that nirma tai at center, no doubt we have real shty policy makers.