RBI’s Big Plan: Soon You May Switch Banks Without Changing Account Number

India’s banking system may soon witness a transformation similar to mobile number portability. The Reserve Bank of India (RBI) is working on a proposal that could allow customers to switch banks without changing their account number, a move aimed at improving customer convenience and competition among banks.

The idea forms part of RBI’s broader Payments Vision 2028, which focuses on making digital payments smoother and giving consumers greater control over their banking relationships. Today, changing banks remains complicated because salary credits, EMIs, SIPs, and bill payments are tied to one account, making customers reluctant to move even when service quality declines.

Why Switching Banks Is Difficult Today?

Although customers are free to open accounts anywhere, most continue with the same bank for years. The reason is what experts call “sticky accounts.”

A single savings account is usually linked to multiple financial activities such as:

• Salary deposits
• Loan EMIs
• Insurance premiums
• Mutual fund SIPs
• Utility auto-payments

Switching banks currently requires manually updating each mandate, increasing the risk of missed payments and penalties. This operational hassle discourages customers from changing banks even when better options exist.

How RBI’s Account Portability Will Work?

To solve this problem, RBI is considering a centralised system known as the Payments Switching Service (PaSS).

Under this framework:

• Your account number becomes portable, similar to a mobile number.
• All payment mandates will be stored in a central platform.
• Customers can migrate mandates to a new bank with authorisation.
• Salary credits, EMIs, and auto-debits would shift automatically.

While the account number remains the same, certain bank-specific identifiers like IFSC codes may change after migration. The goal is to make switching banks seamless without disrupting financial transactions.

What RBI Wants to Achieve?

The central bank’s broader objective is consumer empowerment. By removing switching barriers, RBI aims to:

• Increase competition among banks
• Improve service quality
• Reduce customer dependency on a single institution
• Build a more flexible digital payments ecosystem

The initiative also aligns with RBI’s larger plan to enhance payment efficiency and modernise India’s financial infrastructure under Vision 2028.

When Will This Become Reality?

The proposal is still at the feasibility and design stage. RBI is expected to examine technological integration, security safeguards, and industry-wide standardisation before rollout. Given the complexity, implementation is likely to happen gradually over the coming years rather than immediately.

Conclusion

If implemented successfully, bank account portability could fundamentally change how Indians interact with banks. Customers would no longer stay locked into poor services due to procedural hurdles. Instead, banks may need to compete actively on pricing, service quality, and digital experience, ultimately benefiting everyday users.