The Reserve Bank of India has made its latest attempt for improving banking facilities in India’s banking sector. Deputy governor of the country's apex bank, S S Mundra on Thursday asked banks across the country to gear themselves for bank account portability.
If the Reserve Bank is successful in the implementation of bank account portability, customers will be able to transfer from one bank to another using the same account number. According to the deputy governor, the development of digital banking services has already paved the way for bank account portability to become a reality.
Mundra particularly pointed out that the facility has now become possible after the NPCI’s extensive efforts and development of apps like Bhim, IMPS and UPI. Speaking at an event organised by the Banking Codes and Standards Board of India, the deputy governor of the RBI said, “As such, the prospect of an aggrieved customer silently moving her account to another bank in the near future has become very real.”
On Tuesday, Reserve Bank of India said, “With increase in Aadhaar enrolment and technology advancements, banks and stakeholders must start thinking and prepare for bank account number portability to be made into reality”
Aadhaar (unique identification of customer) and NPCI (as central payment system) are the two important keys for making the banking account number portability possible.
If the bank account is linked to Aadhaar, Aadhaar payment bridge system (APBS) can make it possible to identify one specific bank account as it can route transactions to an individual on the basis of their Aadhaar number. If this idea succeeds, India will be the first country which will adopt this system.