Now Your Account Can Be Ported Just Like a SIM Card: RBI Introduces Bank Account Portability

Bank Account Portability: The Reserve Bank of India (RBI) is planning to introduce ‘Bank Account Portability,’ similar to Mobile Number Portability. Under its ‘Payments Vision 2028,’ customers will be able to switch from one bank to another without changing their bank account number.

Bank Account Portability: The Reserve Bank of India (RBI) is preparing a system within the banking sector known as ‘Bank Account Portability.’ This facility will function exactly like Mobile Number Portability (MNP), where you can switch your SIM card while retaining your original mobile number.

According to a report by The Times of India, the primary objective of this initiative—under the RBI’s ‘Payments Vision 2028’—is to liberate customers from poor banking services and arbitrary charges. Switching banks will now become as quick and simple as changing a SIM card, rather than involving cumbersome paperwork.

Change Your Bank—Not Your Account

Currently, changing a bank account is an extremely complex and tedious process; as soon as your account number changes, you are required to update the new number across all your financial touchpoints—including salary accounts, investments, insurance policies, and government schemes. To avoid this headache, people often stick with their old banks despite receiving poor service.

The RBI’s proposed plan aims to resolve this issue at its root, allowing your bank account number to function as a ‘Universal Account Number.’ You will be able to switch to any other bank while retaining your original account number, and the new bank will simply activate that same existing number within its own system.

PaSS System: The Back-End Technology

To ensure the smooth execution of this entire process on the back-end, the RBI is developing a specialized central system called the ‘Payments Switching Service’ (PaSS). The most significant feature of this system is that it will interconnect all banks; consequently, all your ongoing auto-debits and mandates (such as home loan EMIs, mutual fund SIPs, or electricity bill payments) currently active at your old bank will automatically be transferred to your new bank. Customers will no longer need to visit a physical location in person to fill out a new mandate form or update their account details. This technology will ensure that there are no interruptions to any of your payments when you switch banks.

Freedom from Poor Service and Arbitrary Charges

Once bank account portability is fully implemented, customers will possess the genuine power to choose their banking service providers. If a bank offers a poor digital experience, charges excessive interest, or deducts hidden fees without prior notification, a customer will be able to immediately switch to a better bank.

Driven by this apprehension, banks will be compelled to improve their conduct and make their services more competitive and transparent in order to retain their customers. This shift will foster healthy competition within the banking sector, the direct benefits of which—in the form of superior services—will accrue to the general public.