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don’t rely on one bank


NEW DELHI: Net and online banking services of HDFC Bank faced another outage on Tuesday. On Twitter, users complained that the outage happened when many were taking care of their year-end transactions.

Around 1:00 PM HDFC Bank clarified, on Twitter, that “Some customers are facing intermittent issues accessing our NetBanking/MobileBanking App. We are looking into it on priority for resolution. We apologize for the inconvenience and request you to try again after some time. Thank you.”

It’s not the first time that the bank has faced an outage. Last month, the Reserve Bank of India (RBI) had temporarily halted the bank’s digital launches and sourcing of new credit card customers and appointed an external IT firm for carrying out a special audit of the lender’s IT infrastructure in the aftermath of repeated service outages over the past two years.

While it’s easy to open a new bank account, shifting to a new one can cause problems for users.

Shifting bank accounts

The account opening process is now completely online. You can open a bank account from anywhere on your mobile by filling up a form, uploading required documents, and opting for video KYC to complete the formalities.

But shifting is difficult. You could be investing through the existing bank account where mutual funds deduct the systematic investment plan (SIP) amount every month through ESC (Electronic Clearing Service) mandate. Similarly, there could loan EMIs (equated monthly instalments). Your income tax refund could come to the existing bank account.

You could have given standing instructions for insurance premium or utility bill payment, or it could be the one that you have provided to your insurance company in case of a claim. Then there are beneficiaries that you have added for third-party transfers.

For businesses, the problem could be even more complex as they could have availed multiple services.

It’s a massive exercise to shift all these to a new savings account, and give fresh instructions to a multitude of service providers.

A better option is to have at least two banking relationships. You should also opt for the online statement facility so that the bank emails you the monthly account statement. You can keep the existing bank account by maintaining the average quarterly balance and continue using it for loans and investments. You can use the new bank account for building your new savings and investments.

Shift slowly

If you want to shift your account, you need to do it over a period of time. Make a list of investments, loans, insurance premiums, and standing instructions you have with the existing bank account. Shift each of them slowly to the new one.

Keep the existing account operational for six months to a year to ensure you have taken care of everything transaction.

Before you sign up for a new savings account, make sure that you understand the charges and terms and conditions the new bank.

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