The Reserve Bank of India (RBI) is working on a proposal that may allow customers to switch bank accounts without changing their account number. The move comes under RBI’s Payments Vision 2028 with a strong emphasis on improving user convenience and flexibility in the banking system. Currently, switching bank accounts is a highly complicated procedure and thus people stick to the same bank despite poor service or high charges. Once implemented, it will make bank switching hassle-free. Under the current process, customers have to update their new account number across multiple platforms – salary accounts, investments, subscriptions and government schemes.
Plan proposed by RBI to eliminate problem includes:
- Customer’s account number will act as a universal financial identity.
- It will not remain tied to a specific bank.
- Customer can move from one bank to another without changing your number.
- The new bank will activate customer’s existing account number on its system.
This will make bank services easier for people. For example: if a bank is charging high fees, offering low interest rates or has a poor digital experience, the customer can move to another bank which in turn charges lower fees, high interest rates and has a good digital experience. With this move, customers will have more freedom and control. It will also make banks more accountable to the public.
People will no longer have to update the details everywhere. The new system eliminates this completely. Government schemes like PM-Kisan or VB-G RAM G will continue without disruption. This will also aim at promoting financial inclusion by improving user experience and making digital payments more efficient. The broader aim is to build a customer-first banking ecosystem where convenience and flexibility are prioritised.
