4. Savings account portability will help customers to avoid having multiple bank accounts.
5. For those who are unhappy with the quality of service provided by their existing bank, this will be helpful as they can change their banker quickly and conveniently.
6. It will reduce the amount of paperwork involved in switching banks.
7. Savings account portability could also enhance competition in the banking sector as banks will have to offer better services to retain its existing customers.
The proposal is still in its nascent stage, but the finance ministry has started working towards making portability of savings accounts a reality. The loopholes, which have to be worked on and rectified before bringing this facility into effect, have been identified. These include technical issues like Customer identification codes, KYC norms and Core banking solutions. In addition to this, the facility also requires upgrading to a better technology which can adopt number portability.
But, once all these challenges are met and savings accounts portability is implemented, we can expect the customers to rejoice and reap into the benefits of the facility.