In a landmark move for the Indian banking sector, the Reserve Bank of India (RBI) has unveiled a plan to enable Bank Account Portability, allowing customers to switch from one bank to another without changing their account number.
Unveiled as a core pillar of the “Payments Vision 2028” document released in late March 2026, the initiative aims to treat bank account numbers like mobile numbers—allowing you to “port” your financial identity to a new service provider if you are unhappy with your current bank’s service, fees, or technology.
1. The “Payments Switching Service” (PaSS)
To make this possible, the RBI is developing a centralized infrastructure called the Payments Switching Service (PaSS). This system acts as the “connective tissue” between all Indian banks.
- Centralized Hub: PaSS will store and manage all your recurring mandates, such as SIPs, EMIs, insurance premiums, and utility bills.
- One-Click Migration: When you switch banks, you won’t need to manually update your details with every biller or mutual fund house. PaSS will automatically migrate these instructions to your new bank account.
- Unified Dashboard: Customers will get a single interface to view, manage, and “port” all their active payment mandates.
2. How Portability Will Work
The process is designed to mimic Mobile Number Portability (MNP), focusing on reducing the “stickiness” that keeps customers trapped in poor banking relationships.
| Feature | Current System | New Portability System (FY27) |
| Account Number | Changes with every new bank. | Stays the same across different banks. |
| IFSC Code | Linked to your specific branch. | Will change to reflect the new bank/branch. |
| Mandates (EMI/SIP) | Must be manually updated. | Automatically transferred via PaSS. |
| KYC Data | New documentation often required. | Securely shared with the new bank. |
| Credit History | Remains tied to your PAN. | Remains unchanged and moves with you. |
3. Why This is Being Introduced
The RBI identified that while Indians are technically free to open accounts anywhere, the operational headache of switching prevents true competition.
- End of “Sticky” Accounts: Most people stay with their first bank (often where they have their salary account) simply to avoid the chaos of re-linking dozens of automated payments.
- Boosting Competition: By making switching “frictionless,” banks will be forced to compete more aggressively on interest rates, digital app quality, and customer service to prevent their base from “porting out.”
- Consumer Empowerment: It gives you the power to “vote with your feet” if a bank increases hidden charges or provides poor grievance redressal.
4. What Stays and What Changes?
While the account number remains your “universal ID,” certain technical identifiers will still update to ensure the banking system can route money correctly.
- Account Number: 🟢 Stays the same.
- Debit/Credit Cards: 🔴 Will change. You will receive new cards from your new bank.
- Cheque Books: 🔴 Will change. You will need to use the cheque leaves of the new bank.
- Salary/Direct Benefit Transfer (DBT): 🟢 Seamless. Since the account number is the same, your employer or the government can continue credits without you needing to submit new forms.
5. Implementation Timeline
The RBI is currently in the “Feasibility and Integration” phase.
- Phased Rollout: The system is expected to be implemented in phases starting in late 2026 or early 2027.
- Bank Readiness: Banks are currently being directed to standardize their mandate formats and integrate their Core Banking Solutions (CBS) with the PaSS framework.
“Account portability is not just a technical upgrade; it’s a shift in the power dynamic of Indian finance,” an RBI official noted during the Vision 2028 launch. “Your money shouldn’t be a hostage to a bank’s bureaucracy.”
