Allow interbank account portability: RBI

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Allow interbank account portability: RBI
The Reserve Bank of India (RBI) has asked banks to allow interbank account portability in betterment of the customer service as opening a new account, where customer has to go through fresh know your customer (KYC) once again.

RBI said in the statement "It has been brought to our notice that some banks are insisting on opening of fresh accounts by customers when customers approach them for transferring their account from one branch of the bank to another branch of the same bank.

"Such insistence on opening of fresh account or making the customer undergo full KYC process again causes inconvenience to them resulting in poor customer service," it said. "It is not reasonable in view of the fact that most bank branches are now on Core Banking Service (CBS) and KYC records of a particular customer can be accessed by any branch of the bank," it said.

Banks are advised that KYC once done by one branch of the bank should be valid for transfer of the account within the bankas long as full KYC has been done for the concerned account.The customer should be allowed to transfer his account from one branch to another branch without restrictions, RBI said in the notification.

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Read more about: banks, rbi, kyc
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