Mumbai, June 1: The Reserve Bank of India has made its latest push for improved facilities in India’s banking sector. Deputy governor of the apex bank, S S Mundra on Thursday asked banks across the country to ready themselves for bank account portability. Also Read - RBI Recruitment 2021 Application Process Begins at rbi.org.in, Direct Link Here
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. Also Read - Is RBI Planning to Scrap Old Notes of Rs 100, 10 And 5? Check Government's Statement
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.” Also Read - Digital Loan: Here's Why You Should Safeguard Yourself From 'Torcher' Apps
The deputy governor had first proposed the facility in February 2016. However, he said that back then the concept might have appeared somewhat abstract but with technological advancements in the field of payment system such as UPI etc, coupled with massive enrollments under Aadhaar and their linkage to individual bank accounts, it has come within the realms of possibility.
The RBI had already issued a directive to all banks in 2012, to ensure intr-bank account portability for customers. However, much like the telecom sector, it is believed that portability will cause enhanced competition for customer shares within the banking sector.
Mundra also warned banks against charging customers unreasonably for the various services provided. Commenting on the same he said, “While banks have been granted autonomy in fixing minimum average balance or charging for premier services, it should not be used as an excuse to deny or drive away services to the common man.”He also added, “If a bank is offering premier services, I don’t see anything wrong for them to charge for that but it should be reasonable and not usurious, and it should not be designed to keep some customers away.”