Bank account number portability possible – RBI

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RBI deputy governor SS Mundra has spoken about the idea of ‘account number portability’, which he had first advocated a couple of years ago.

“Back then the concept might have appeared somewhat abstract
but with technological advancements in the field of payment system such as UPI etc. coupled with massive enrollments under Aadhaar and their linkage to individual bank accounts, it has come within the realms of possibility. As such, the prospect of an aggrieved customer silently moving her account to another bank in the near future has become very real,” said Mundra.

Delivering the keynote address at the annual conference of principal code compliance officers organised by the Banking Codes and Standards Board of India in Mumbai on Tuesday, Mundra called for working towards operationalising a query portal which will be useful for the inexperienced frontline staff especially in view of higher attrition/rotation. This would enable them to impart correct information rather than avoiding or giving wrong information.

“Updation of Code of Bank’s Commitment to micro and small enterprises should include commitment on revival and rehabilitation framework and life cycle financing of MSMEs. Though the BOs (Banking Ombudsman) don’t intervene in credit decisions, several complaints about delayed decision-making in granting of loans to MSMEs, education and housing loans are received. There is a need to include a suitable clause in the code for setting deadline for decision-making on such loans,” he said.

Mundra added that the payment system area has become quite integrated with customers of non-bank players utilizing the banking channels to fund their e- wallets etc. In situations where conflict arises, it would be expected of banks, being the senior and long – established players to take initiative for quick resolution so that the customer is not put to harassment.

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