Fintotal News Analysis | Banks to Allow Account Transfer to Other Branches within Bank
Banks to Allow Account Transfer to Other Branches within Bank
Ruby Jacob, 28 Apr 2012

The RBI has directed banks to allow customers to transfer accounts from one branch to another without having to open a new account or undergoing the entire KYC process again.

Customers who wished to transfer their accounts to a different branch were insisted upon opening a new account since the customer's information was kept in the home branch. This led to much inconvenience to customers who would be put through the Know Your Customer requirements all over again.

Now that most bank branches are under Core Banking Solution (CBS), all account holder related details are fed into a central database from where records are accessible across all branches of the bank, ATM and even the internet. So RBI has asked banks to mandatorily allow transfer of accounts without insistence on opening new account. This is a good step in the direction of customer service.

With CBS in place, customers can avail services like withdrawing cash, depositing cheques from any branch accessible to them. Banks' KYC procedure involves submission of address proof, identity proof and PAN card for proper verification. With RBI's new directives banks might allow transfer of account by just changing address on submission of new address proof.

In the monetary policy review on 17 April, RBI had asked banks to create and issue a Unique Customer Identification Code (UCIC). UCIC will make customer identification, monitoring financial transactions in various accounts and tracking facilities availed by customer easier. This is expected to make banking operations smoother for customers

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