Customers may soon change banks without altering account number under new RBI proposal

In a major move aimed at enhancing customer convenience, the Reserve Bank of India (RBI) has begun work on a new system that could allow bank account holders to switch banks without changing their account numbers.

The proposed framework, being considered under the RBI’s ‘Payments Vision 2028’, is expected to bring a significant shift in the banking sector by giving customers the freedom to choose their preferred bank without the hassle of opening a new account.

Under the new system, a customer’s existing bank account number will remain permanent. When a user opts to change their bank, the new bank will integrate the existing account number into its system, enabling a seamless transition.

Currently, switching banks involves opening a new account, updating documents, and revising banking details across multiple services such as salary accounts, loan EMIs, mutual fund SIPs, insurance premiums, subsidies, and utility bill payments. This process is often time-consuming and prone to errors, sometimes leading to failed transactions and financial inconvenience.

To address this, the RBI is working on a centralised platform that will securely store customers’ auto-payment mandates, investment details, and billing information. Once implemented, these details will be automatically transferred to the new bank when a customer chooses to port their account.

The move is also expected to increase competition among banks, pushing them to improve services and reduce unnecessary charges. Customers will be able to switch banks more freely if dissatisfied, thereby promoting transparency and efficiency in the banking system.

The RBI has not yet announced a timeline for the rollout, but the proposal is being seen as a major step towards strengthening India’s digital financial ecosystem.