In a historic move to empower millions of account holders, the Reserve Bank of India (RBI) is working on an ambitious ‘Bank Account Portability’ framework under its ‘Payments Vision 2028.’ This reform will allow customers to switch from one bank to another while retaining their existing account number, much like Mobile Number Portability (MNP).

Currently, switching banks is a tedious task involving manual updates of salary details, SIPs, EMIs, and government subsidies. To solve this, RBI is developing a centralized ‘Payments Switching Service’ (PaaS). Under this system, all payment mandates and auto-debit instructions will be automatically migrated to the new bank. Customers will no longer need to inform HR departments or utility providers individually about the change.

This initiative is expected to boost competition among banks, forcing them to improve digital services and reduce hidden charges. While the IFSC code might change as it is bank-specific, the core account number will remain a universal financial ID. With this, RBI aims to simplify banking, enhance customer freedom, and align Indian financial systems with global innovation standards. Switchable banking is no longer a dream but a near-future reality.