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RBI tells banks to allow intra-bank account portability

According to RBI, customers should be allowed to transfer their bank accounts from one branch of the bank to another without restrictions only in cases where KYC details have been provided

April 30, 2012 12:28 IST | India Infoline News Service

To enable customers to shift their bank accounts to any of the branch, without any change in the account number, the Reserve Bank of India (RBI)  has asked banks to allow intra-bank account portability only  in cases where KYC (know your customer) details of the concerned account have been provided.

“Some banks are insisting on opening of fresh accounts by customers when customers approach them for transferring their accounts 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,” RBI said in the notification.

The notification added that, “KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC details have been done for the concerned account. The customer should be allowed to transfer his account from one branch to another branch without restrictions.”

The central bank further said 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.

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