After Mobile now Bank Portability in India

After allowing portability of mobile numbers and health insurance policies, the Indian government plans to give customers the flexibility to change his/her bank without changing the savings banks account numbers, a senior official said on Tuesday.

Financial services secretary DK Mittal said the finance ministry was keen to allow savings banks account number portability and was already working on the proposal.

“Right now there are some technical problems. We have identified them and will overcome them soon,” Mittal told reporters in New Delhi.

In a major relief to customers, the government last year allowed portability of mobile numbers under which the users can change service provider without changing his/her numbers after paying a nominal fee.

From July last year, the regulator also allowed health insurance portability under which policy holders have the flexibility to switch from one insurer to another on same terms.

Mittal said the banks would have to work on certain issues like know your customers norms and core banking solution to allow account number portability.

Once savings banks account number portability is allowed, customers can change bank without going through the cumbersome process of know your customer norms again.