RBI to make bank accounts portable; soon, you can switch banks without changing a/c No.—Here's how it will work

Bank Account Portability: India’s banking system could soon undergo one of its biggest customer-first reforms, with the Reserve Bank of India (RBI) working on a proposal that may allow people to switch banks without changing their account number. Under the proposed Payments Vision 2028, customers could soon port their bank accounts much like mobile number portability - keeping the same account number while moving to a different bank. The idea is simple. Today, many people continue with a bank despite poor service or high charges because switching is complicated. RBI’s plan aims to remove that friction completely. If implemented, it could make bank switching as easy as changing a SIM card, while ensuring that payments such as EMIs, SIPs and bill mandates continue without disruption.

What is bank account portability?

At present, changing a bank account is often a tedious process. Customers have to update their new account number across multiple platforms - salary accounts, investments, subscriptions and government schemes - making most accounts effectively “sticky”.

Add Zee Business as a Preferred Source

RBI’s proposed bank account portability aims to eliminate this problem. Under the plan:

• Your bank account number will act as a universal financial identity
• It will not remain tied to a specific bank
• You can move from one bank to another without changing your number
• The new bank will activate your existing account number on its system

Switch banks easily if service is poor

One of the biggest advantages of this move is the ability to walk away from poor service.

If a bank is charging high fees, offering low interest rates, or has a weak digital experience, customers will be able to switch quickly without worrying about the usual complications. This is expected to:

• Make switching fast and hassle-free
• Remove dependency on a single bank
• Give customers greater freedom and control

How EMI, SIP and bill payments will work after switching?

A major concern while changing banks is disruption to ongoing payments. RBI’s proposal directly addresses this through a centralised system.

• All EMIs, SIPs and bill payments will automatically shift to the new bank
• No need to inform lenders, mutual funds or service providers
• Payments will continue without interruption

This will be enabled through a centralised infrastructure, often referred to as a Payments Switching Service (PaSS).

PaSS: The system behind seamless switching

RBI is working on a Payments Switching Service (PaSS) - a centralised platform that will manage all payment mandates. Here’s how it will work:

• All auto-debits and mandates will be centrally stored
• When you switch banks, these mandates will be automatically rerouted
• Both incoming and outgoing payments will remain intact

This removes the need for manual updates and ensures a smooth transition.

No more updating account details everywhere

Anyone who has switched banks knows the biggest pain point - updating account details everywhere. The new system aims to eliminate this completely.

• Salary accounts: No need to repeatedly inform HR departments
• Government benefits (DBT): Subsidies such as LPG or schemes like PM-Kisan will continue without interruption
• KYC details: Securely shared with the new bank

This means the end of repeated form-filling and document submissions.

Why RBI is pushing this under ‘Vision 2028’?

The RBI’s Payments Vision 2028 focuses on improving user experience and making digital payments more efficient. The key goals include:

• Reducing friction in banking
• Improving ease of switching
• Promoting innovation
• Aligning India’s systems with global standards
• Making cross-border payments faster and cheaper

The broader aim is to build a customer-first banking ecosystem where convenience and flexibility are prioritised.

What changes for customers and banks?

This move could significantly shift the balance of power in the banking sector.

For customers:

• Greater control and flexibility
• Freedom to choose better banks
• Seamless banking experience

For banks:

• Increased competition
• Pressure to improve services
• Reduced customer lock-in

Will IFSC, loans and credit history change?

While the account number remains the same, some elements will still change or carry forward:

• IFSC code: Likely to change, as it is linked to the bank branch
• Loans and liabilities: Will continue and shift to the new bank
• Credit history: Will remain intact

So, portability does not remove obligations - it simply makes switching easier.