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Wednesday, July 18, 2018

RBI for intra-bank account portability

The facility would enable customers to shift their account to any of the desired branch any number of times,without change in account number.

Written by ENS Economic Bureau | Mumbai | Published: April 28, 2012 12:42:43 am

The Reserve Bank of India has asked banks to allow intra-bank account portability in cases where full KYC (know your customer) details of the concerned account have been ascertained. The facility would enable customers to shift their account to any of the desired branch any number of times,without change in account number.

“Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC has been done for the concerned account,” RBI said in a notification.

In order to comply with KYC requirements of correct address of the person,fresh address proof may be obtained upon such transfer by the transferee branch,it said.

“It has been brought to our notice that some banks are insisting on opening of fresh accounts when customers request a transfer of account from one branch of the bank to another,” the RBI said. “Such insistence on opening of fresh account or making the customer undergo full KYC process again causes inconvenience,” it said. “It is not reasonable in view of the fact that most bank branches are now on Core Banking Service and KYC records of a particular customer can be accessed by any branch of the bank.”

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