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Last updated: January 4, 2012 at 18:17 pm

Savings Bank Account Number Portability coming soon !

Implementing portability scheme is any form of service is the best way to ensure that the customer remains the king. While mobile number portability empowered telecom subscribers to ditch their erring operators; health insurance portability allowed customers to switch between, their life and non-life insurance, service providers.

More than serving its cause of allowing customers to switch between agencies, MNP has succeeded in creating policy awareness amongst them, and fear within service providers that they are not the dictators of the trade.

Furthermore, the government may now introduce portability in the banking space too. Yes, we may soon be allowed to move our savings bank accounts from one bank to another with the same number, which is likely to force banks (especially PSU banks) to improve their service levels.

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Financial services secretary D K Mittal was quoted as, “We want to do it (savings account number portability). Right now there are some technical problems, we have identified them. We will overcome them soon.”

Moreover, this move comes at an opportune time when the RBI has deregulated the savings bank deposit rates. Post-deregulation, while smaller lenders led by Yes Bank has raised the savings deposit rates to 7%; leading banks such as HDFC Bank and SBI have shown muted response in terms of passing on hikes for their savings deposits.

Thus, once porting is allowed in the banking industry, the equation for larger banks could turn overhead – as the rate differential is too high to ignore between smaller and bigger banks, at this juncture. Take, for instance, for SBI – a 50 bps increase in the in the savings bank deposit rate will push up the state-owned bank’s costs by Rs.1500 crore.

The regulation is likely to be implemented once banks sort out their customer KYC norms, core banking solutions and other issues such as renumbering of savings accounts, most of which are preceded by branch codes of respective banks, and upgraded technology ready to adopt number portability.

This prospective norm will certainly save a lot of paper work involved in switching your bank account; and best of all you could retain your old account number without much hassles. Lastly, we need a centralised agency that would maintain all our KYC documents, so that we don’t need to comply with submissions with different banks repeatedly.

What say?

8 Comments

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  • GREAT JOB I WANT BANK AC NUMBER PORTIBLITY FOR MY ALL MUTUAL FUND AND ITS SIP ,ECS, AND ALL INVESTMENT . FOR ALL INVESTMENT IT IS VERY GOOD. SOME BANK DONT GIVE GOOD FACILITY THEN WE CAN CHANGE THE BANK WITH SAME AC NO. . BECAUSE OF IT BANKS IMPROVE THERE SERVICE. TO KEEP THERE CUSTOMER. IT IS ALSO GOOD FOR NON MAINTAIN AVERAGE MONTHLY/QUATERLY BALANCE SOME BANK AXIS,ICICI,HDFC 10000 AND SBI 0 BALANCE

  • A very few number of people might require this, not on a large scale as mobile number portability. Doesn’t sound very useful to me as of now. On the contrary, our government should think of directing the mobile operators to give us unlocked iPhones/data cards.

  • why Savings bank account number portablity? Very stupid Idea! I wonder how one can get these silly ideas when Govt have some great challenges like high inflation, depreciating Rupee against other major currencies, decelerating growth, shrinking credit portfolio, falling market, high interest rates etc… Govt is struggling hard to get out of these financial problems, instead of thinking of solving these issues; govt is addressing an issue to help (?) bank customers which is not at all a problem. Bank a/c numbers are not mobile number to get shared with everyone. It will be shared for specific purpose. The account of a customer in a bank is identified by 2 parameters, the account number and the IFSC code. There was uniformity in mobile number, where all service providers has given 10 digit numbers (with-out alphabet) for their customers, and mobile number was only parameter to be remembered. Its not same in the case of saving bank account numbers. Govt has permitted Banks to have its own account number format, SBI and its subsidiaries have 11 digits, HDFC 14 digits, Karnataka Bank 16 digits, Vijaya Bank 15 digits, some banks have Alpha-numeric account number say corporation Bank. When there is no uniformity in account number format how can we have same account numbers when we change the bank? If all banks go for uniform account number format all most all account numbers except few banks will gets changed. Rather than helping customers, it will irritate customers. We have given account number for our investments, some are more than 7-10 years long. If the account number changes how can we handle the redemptions. Banks have invested a lot of money to develop/buy the softwares which are already in use. If govt still insists banks to go for “Saving bank account number portability” then banks have to invest some more money in softwares for additional customization, not from their pocket but definitely Passover the burden to customers. Will it really help customers? When a customer wishes to share the bank a/c details, he should share account number and IFSC. When a customer changes a bank any how he should change IFSC as it is different for different banks and branches. Then what is the use of “Saving bank account number portability”? We really expect the govt spend its IIM-IQs to solve major issues the financial sector is facing which will help everybody than giving the nonsence ideas like "saving Bank account number portability". Naveen Honnalagere

  • I think this move will not help any one. First of all, let me explain the differences between Mobile No. Portability and Bank a/c no. portability. Most of us choose the mobile number ourselves. We make sure that the number has some fancy figures or digits which can be easily remembered or some sequential numbers. It depends on person to person and on availability of such numbers. Where as when we open a Bank a/c, the Bank gives us a a/c no. based on the running serial number. We give our mobile number to friends, relatives, business associates so we require a fancy number (which can be remembered with a little effort). Where most of us consider our Bank a/c no. a confidential issue. Unless specifically required we dont disclose our a/c no. Therefore I dont think any one has a sense of belonging while dealing in bank a/c no. Also a bank a/c no. depends on the bank’s own procedure. Small town banks have a 5 digit s/b a/c no. while big players allot a 13 digit number. Just imagine a 13 digit a/c no. getting transferred to a bank dealing in 5 digit numbers. The whole idea to me looks like Kharcha jyada, fayda kam. Just that the govt want to show to the nation that it is doing soooooo much for its people. I can understand if govt allows people to keep the car number plate if we sell old car and buy a new car. But Bank a/c no.?? For me its a bouncer. Dont get it. Just my two paisa :)

    • I really agree with Altaf. I think bank A/C. number is not very common in our circle. we never share our bank A/C. with our friends, therefore no need to remember that or sticking with that. concerns are arising for business owners who frequently use their A/C number. This facility will actually relax them .

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