Bank portability: A good suggestion

The RBI could pass rules to help customers who want to shift their loan from one bank to another

Lately, bank charges and unfair trade practices have been in the news. In fact, an online petition has been started by a group of professionals, urging the Reserve Bank of India (RBI) governor to stop banks from fleecing depositors and borrowers alike. The petition has already garnered 100,000-plus signatures. Against this background, RBI Deputy Governor S S Mundra’s statement on Tuesday holds much relevance. His suggestion that RBI should allow portability of accounts so that the aggrieved consumer can move to another bank is a good solution.

While providing portability remains a desirable objective, it may take some time as it