As suggested in the Damodaran Committee report last year, the Government is planning to introduce portability in the savings account numbers. If implemented, the system will allow the bank customers to switch their banks while their bank account will remain the same.
It is an ambitious project of the government but it will require banks to adopt several new techniques as well as to avail new technology.
The CEO of Bankbazaar, Mr. Adhil Shetty said, "Banks will have to restructure their account numbering systems. Many of them have different methods and streamlining these will take time. This will also involve changes in their software integration systems."
"The first step should be that banks allow number portability for savings accounts within the same banks. There are a few banks, such as Dhanlaxmi Bank and ICICI Bank, which provide this facility. But it's not offered by every bank," said Mr. Muralidharan R, Chief Operating Officer of Dhanlaxmi Bank.
The banks will also have to be a little more concerned about the Know-Your-Customer (KYC) norms. A uniform pattern needs to be introduced for all the banks to follow.