Allow Intra-Bank Account Portability- RBI
Now it’s easier for people who migrate from one place to other to transfer their bank account to any state. If you are a migrant and would like to shift your account to another bank, the RBI just made it easy for you. Last week, the RBI (Reserve Bank of India) made it mandatory that all the banks should allow people to transfer their account from one branch to other without persuading them to open a new one. With the innovation of an intra-bank account portability you need not give all the KYC (know your customer) details in other places.
Before the intra-bank account portability, a customer had to maintain accounts in the local branches and in case of his transfer to other states, he/she had to open a new account there with all the KYC details. The RBI also has announced that banks need not ask for customers KYC again and should validate the transfer with the same bank. Also there should be no restrictions while transferring the account.
The Reserve Bank of India (RBI) has asked all banks to make it easier for customers to transfer their accounts between two branches of the same bank where full KYC (know your customer) details of the concerned account have been ascertained. Some banks were insisting on opening of fresh accounts when customers approach them for transferring their account from one branch to another of same bank. This will ease customers who change jobs or locations and want to shift their bank account to the new location.
The only requirement in order to transfer the same account to another branch is that the transferee has to submit the bank his new address proof and precise address. Also there are various banks which provide ‘at par’ cheque books to their account holders. This will make it easier for their customers to deposit the cheque in any part of the country without any hassle. It really does not make a difference if the home branch is another city.
A Core Banking Solution (CBS) helps maintain all the information in a centralized database which can be easily accessed by all the bank branches, ATMs, internet and more. Perhaps, most of the bank branches charge high fee for their services outside the state. To avoid such inconvenience, the RBI has implied a rule that all the banks have a central customer ID in order to ease account portability and make sure that the complete customer details are centralized. Hence forth this new procedure will help all the banks as well as the customers from using the same old KYC rather than giving a new one.
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