The Reserve Bank of India will roll out major banking reforms from April 1, 2026, aimed at improving transparency, account portability, and customer convenience.
The measures include a Payments Switching Service, faster credit score updates, and the removal of prepayment charges on floating-rate loans.
The Payments Vision 2028 introduces a Payments Switching Service to consolidate all standing instructions. Customers will be able to view and shift mandates between banks from a single platform, making account changes easier without disrupting payments. Experts said this reform will reduce dependency on individual banks and improve efficiency in payment systems.
Credit scores will now be updated every seven days, reflecting repayment behaviour more quickly. The RBI also announced the removal of prepayment and foreclosure charges on floating-rate loans, covering home, car, personal, and education loans. Customers can add up to four nominees to accounts and lockers, strengthening security and access.
Financial specialists cautioned that automated payments carry risks of duplicate or wrong deductions due to technical issues or fraud. They advised customers to keep transaction alerts active, review statements regularly, and cancel unused mandates. Any unfamiliar deduction should be addressed immediately to prevent further losses.
If implemented smoothly, the reforms could give customers greater control and flexibility in managing accounts and payments. Analysts believe the changes may increase competition among banks. However, strong safeguards and consumer vigilance will remain essential to prevent errors and unauthorised deductions.
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