RBI Vision 2028 Focuses on Bank Account Portability

The Reserve Bank of India has unveiled its Payments Vision 2028 with a strong emphasis on improving user convenience and flexibility in the banking system. A key proposal is to enable bank account portability, allowing customers to switch accounts more easily without disrupting their financial activities. The move reflects RBI’s broader goal of enhancing customer empowerment and reducing friction in digital payments.

Challenges in switching bank accounts

Despite the freedom to open accounts in any bank, most customers continue using the same account for years. This is due to multiple recurring transactions such as salaries, EMIs, utility payments and investments being linked to one account. These dependencies make accounts “sticky” and discourage users from switching banks even when better options are available.

Payments Switching Service as a solution

To address this issue, RBI has proposed a Payments Switching Service (PaSS). This system will centralise all standing instructions and payment mandates. Customers will be able to view, manage and transfer these mandates seamlessly when changing banks. This reduces reliance on individual banks and simplifies the migration process, making account portability practical.

Focus on cross-border payment efficiency

Another major pillar of the vision is improving cross-border payments. RBI aims to make international transactions faster, cheaper and more accessible. The plan includes reviewing regulatory and technological barriers and aligning India’s systems with global standards, particularly those promoted by the G20. Efforts will also support linking domestic payment systems with other countries and expanding the use of digital currencies.

Important Facts for Exams

• Payments Vision 2028 was released by RBI in March 2026.
• PaSS refers to Payments Switching Service for mandate portability.
• It aims to reduce “stickiness” of bank accounts.
• Cross-border payment reforms align with G20 priorities.

Implications for the financial ecosystem

The initiative marks a shift from expanding digital payments to improving their quality and usability. Greater portability will increase competition among banks and give customers more control over their finances. It is expected to create a more efficient, transparent and globally connected payments ecosystem in India.