The Finance Ministry is working on savings banks account number portability, which will allow a customer to retain his account number while changing his bank.
“We want to do it [savings a/c number portability]. Right now there are some technical problems…We have identified them. We will overcome them soon,” Financial Services Secretary DK Mittal said.
He was speaking after a meeting in the ministry, which among others was attended by Economic Affairs Secretary R Gopalan, Finance Secretary RS Gujral and Chief Economic Adviser Kaushik Basu.
He said banks would have to work on identification code, know your customers (KYC) norms and core banking solution (CBS) for implementing the savings bank account number portability.
The move would help customers change banks, without the need of going through the KYC norms again.
Last year, the government had allowed portability of mobile numbers and health insurance policies.
In October last year, the Reserve Bank had deregulated interest rates on savings account deposits, following which few private sector lenders have hiked rates to as much as 7%.
There are advantages for the customer but according to the KYC norms bank need to ask again for KYC documents for the prevention of Anti Money laundering. So the step of Saving account portability will lead to the problem for the banks.
Welcome move. At the same time, proper security measures should be implemented and followed scrupulously.