In a big setback for customers, banks are trying to excuse themselves from RBI's plan to offer Bank Account Number Portability or inter-bank account portability scheme. The government is reportedly now planning to play the role of a saviour - for customers. The scheme would have helped bank customers to switch to another bank while retaining their account number if they did not like the services of their own lender. But, the scheme is being opposed by Indian Banking Association and Trade Unions. 

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Sources close to the development informed Zee Business's Alok Priyadarshi that the RBI in its recent meeting with the Finance Ministry informed, "The plan to implement the Scheme of Bank Account Portability may be delayed due to certain glitches in the process, like technology and the sheer number of bank accounts. Core Banking System, as well as bank frauds and the existing Non-Performing Assets (NPAs), are some of the other problem areas. 

According to sources, the government wants to provide the facility to bank customers, whose bank accounts are linked with their Aadhaar numbers. And for this purpose, the government, which wants to act as a saviour, suggested that UIDAI and the NPCI can also be asked to provide a solution to the problem that is being faced by the banks. 

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Background

Earlier in 2017, RBI Deputy Governor SS Mundra asked banks to look into bank account number portability as it would improve customer service by enhancing competition between the banks. Currently, there are around 80 crore bank accounts in the country, most of them were opened after the launch of Prime Minister's Jan Dhan Yojana in 2015. 

Earlier, the RBI in 2012 also allowed intra-bank portability by allowing customers to shift their bank accounts to another branch of the same bank without undergoing the full know-your-customer process.