In a move aimed at boosting customer convenience, the Reserve Bank of India is working on a new system that could allow bank customers to switch banks without changing their account numbers.
The proposal, part of the RBI’s ‘Payments Vision 2028’, seeks to transform the banking experience by enabling users to move to a bank of their choice without the need to open a new account. Under the plan, account numbers would become permanent, with the new bank integrating the existing number into its system for a seamless transition.
At present, changing banks requires opening a new account and updating details across multiple services such as salary credits, EMIs, SIPs, insurance premiums, subsidies, and utility payments. This process is often time-consuming and can lead to errors or failed transactions.
To simplify this, the RBI is developing a centralised platform that will securely store customers’ auto-debit mandates, investment records, and billing information. These details will be automatically transferred when a customer opts to switch banks.
The move is also expected to intensify competition among banks, encouraging better services and lower charges. Customers will have greater flexibility to switch if dissatisfied, promoting transparency and efficiency in the system.
While no rollout timeline has been announced yet, the proposal is being seen as a significant step towards strengthening India’s digital banking ecosystem.