RBI’s Big Move: Bank Account Portability to Let You Switch Banks Without Changing Account Number

The Reserve Bank of India (RBI) is planning a major reform that could soon allow customers to switch banks without changing their account numbers, similar to mobile number portability. This initiative, part of RBI’s Payments Vision 2028, aims to reduce the inconvenience associated with changing bank accounts, where customers currently face challenges due to linked services such as salaries, EMIs, subscriptions, and automatic payments. To address this “stickiness,” RBI is proposing a centralized system—often referred to as a Payments Switching Service—that will allow users to seamlessly transfer all standing instructions and mandates from one bank to another. This move is expected to enhance customer convenience, increase competition among banks, and improve overall efficiency in the financial system. Additionally, the reform aligns with RBI’s broader goal of creating a more flexible, user-friendly, and globally integrated payments ecosystem, including faster and cheaper cross-border transactions.