MNP for banks if RBI has its way; will you gain from it?

Just like Mobile Number Portability (MNP) for a mobile phone number, your bank account number too will be yours to keep forever if the Reserve Bank of India (RBI) has its way. 

On Tuesday, SS Mundra, Deputy Governor, RBI said, “Banks should prepare for the eventuality and all the stakeholders should at-least start thinking on how the account number portability can be made reality in the Indian banking sector.”

“Digital banking will play a huge role in enabling bank accounts to be ported with the same ease as mobile numbers. NPCI’s extensive efforts and development of apps like Aadhaar, Bhim, IMPS and UPI among others have brought this abstract concept into the realm of reality," Mundra said.

He also called upon the Indian Bank Association (IBA) to take adequate measures to facilitate bank account portability.

The move comes after examining the rising amount of customer complaints into the banking system. The RBI has guided banks to bring in some structural reform in passbook information and security in digital transactions.

Mundra said, “While banks have been granted autonomy in fixing minimum average balance or for charging for premium services, it should not be used as an excuse to deny service or to drive away common man.”

This was not the first time when Mundra urged for bank account portability. On February 05, 2016, he had said, “We are well-placed to move towards account number portability and the industry should debate this.”

In the month of December 2016, RBI had released the annual performance of the Banking Ombudsman Scheme 2006, which showed the number of complaints during 2015 – 16 increased by 21% at 1,02,894 as compared to the previous year. 

Public Sector Banks accounted for 64% of the total complaints out of which 29% complaints were against SBI & Associates group. Private Sector Banks accounted for 26% whereas Foreign Banks accounted for 3% of total complaints received.

At present, RBI has only allowed banks banks to do intra-bank account portability in cases where full KYC (know your customer) details of the concerned account have been ascertained.

Account Holder can submit application either at transferor (New Branch where the account is proposed to be transferred) or at transferee branch (Existing Branch where the account holder is currently banking).