The relationship between a bank and a customer is based on the foundation of trust and service. Add to this, factors such as cost and convenience, which further influence a customer's choice of banking service provider. But often, reasons like unsatisfactory service of the current banker or a change in professional or personal situation, force people to maintain accounts with multiple banks.
Although, customers prefer to remain loyal to one bank, they often associate with multiple banks to keep away from the tedious and time consuming task of closing existing accounts and opening new ones. Under these circumstances, a facility which enables customers to switch to different banks while retaining their existing bank account numbers will make their lives a lot easier. This is exactly what savings account portability aims to do.
This facility allows customers to change their accounts from one bank to another bank while retaining their existing savings account number. As a result, customers are free to change their accounts for various reasons without undergoing the procedures of closing and opening bank accounts again and again.
Though, the idea of savings account portability has already been proposed by the finance ministry, however, its applicability in practical terms is likely to take around three years owing to certain technical issues.