It is very difficult to close and open a new account as there are many procedures required for this. Due to this customers find it painful to switch bank accounts even though they are not happy with their current bank’s service.
Think if it’s become possible for you to simply change the bank without changing your bank account number. This can become a reality if in India bank account portability process is adopted. Same is the case with the mobile number portability concept, the customer and not the bank will own the account number. In the countries like
“Along with technology it may happen. Today it may not be possible but tomorrow it will be. Within the bank today it is possible. You need to have only one ID and bank account can be taken anywhere. In fact bank account remains at one place only. You can get the service from anywhere,” says K.C. Chakrabarty, the chairman and managing director of Punjab National Bank.
This service will enable the account holders who want to move their payment relationship from one bank to another, therefore increasing customer mobility and lowering switching costs for their current accounts. This service will also help consumers who are mostly ignored after becoming a customer of the bank and fail to get benefit from privileges like lower interest rates on loans to new customers and sloppy service on phone banking. Though this service is yet to be implemented in
Gunit Chadha, Managing director and chief executive officer of Deutsche Bank, said, “I think customers have the choice right now. You can in-operate an account and move to another account. And you can have no frills account with transaction account portability. So in effect there is already bank account portability because a customer can make a choice.” Chadha said although many banks have not put bank account portability high on their priority list.
It will still take few years for bank account portability to get implemented in
