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If RBI has its way, you can soon opt for bank account portability
RBI deputy governor S S Mundra has batted for the introduction of bank account portability. The deputy governor stated that the concept which was considered abstract a couple of years back has now come become possible with technological advancements.
The governor also stated that as in the telecom sector, portability will allow a customer to transfer his account to another bank.
The governor also stated that RBI will soon come up with guidelines that will limit customer liability in case of a fraud.
Various technological advancements in recent times:
- • Advancements in the field of payment systems such as UPI
- • Massive enrolment under Aadhar (covered around 90 percent of the population) and its linkage to individual bank accounts
Challenges to bank account portability:
- The banks need to make changes to their core banking solutions to implement portability
- Another challenge will be use of multiple account number formats across banks. For example, while ICICI bank account number consist of 12 digits, HDFC account number consists of 14 digits
- Uniformity of account number format is a must to achieve portability
Protecting customers by limiting their liability in case of a bank fraud:
- RBI has issued a notification in August which stated that if a fraud is reported within four to seven working days, the liability of the customer will be capped at 5000 rupees
- It has also asked banks to strengthen their IT systems and take steps that help safeguard customer liability
Complains made to the banking ombudsman:
- The number of complaints made to the banking ombudsman exceeded one lakh last year
- Percentage of complaints that relate to non-adherence to the banking codes and standards board of India code has significantly increased in recent times
- This could be attributed to the lack of understanding of the code among frontline staff
- Earlier the minimum standards for customer service has been codified
- Bank statements at present are cryptic despite guidelines from the RBI that mandate recording of intelligible particulars
- The quality of cheque leaves that enable printing of fake cheques is a matter of grave concern