Amid the reports of finance ministry asking banks to look at account number portability, the Reserve Bank of India suggests that more than the account number portability the one-time "know your customer" procedure is a better way to serve the account holders. However, it seems to be a technological challenge and could be made simpler by linking it with unique identification number.

The Times of India on Tuesday quoted K C Chakrabarty, deputy governor, RBI saying, "A bank account is a contract between a customer and the bank and it is not easy to transfer this contractual relationship. It can perhaps be looked at once the UIDAI numbers are in place but as of now it is a challenge in terms of technology."

Account number portability is a similar concept to that of mobile number portability. Bankers say that unlike mobile phone numbers there is no pressing need for a customer to retain the same account number. The only reason why a customer would need the same number is because he may have left standing instructions in respect of the account. But with application of one-time KYC norms it should be possible for customers to shift such instructions immediately," said a banker.

In banking, number portability will require that customers be assigned a unique identity number. The government has proposed the UIDAI to be such a unique number. However, in the absence of such a number there is a need for a central registry to assign this unique id to customers.