Now, savings account number portability coming

You may soon be able to switch your bank without having to change your account number, if you are savings bank account holder. The Finance Ministry is keen to usher in savings bank account number portability and has begun discussions on removing regulatory restrictions, a top Government official said.

“We want to do it (savings account number portability). Right now there are some technical problems, we have identified them. We will overcome them soon”, Mr D.K Mittal, Financial Services Secretary, told reporters here.

KYC norms

His remarks came after a meeting in the Finance Ministry attended, among others, by Finance Secretary, Mr R.S.Gujral, Economic Affairs Secretary, Mr R Gopalan, and Chief Economic Advisor in the Finance Ministry, Dr Kaushik Basu.

Introduction of savings account number portability is also expected to help customers change their banks without having to go through know your customer (KYC) norms again.

The Government has already, through sectoral regulators, allowed portability of mobile phone numbers and health insurance policies.

Mr Mittal said banks will have to work on identification codes, KYC norms and Core Banking Solutions for implementing savings bank account portability.

Last October, the Reserve Bank of India had de-regulated interest rates on savings bank accounts, following which some private sector banks hiked their rates to 7 per cent.

krsrivats@thehindu.co.in