During the switching period, the account holders will be fully protected against any financial loss, while the concerned banks will have to oversee the transfer of all incoming and outgoing payments of the customer.
The service is expected to be launched from 16 September 2013, and customers will be able to select from 33 current account brands across 17 participating institutions.
Commenting on the planned launch, UK Chancellor of the Exchequer George Osborne said, "The new 7 day switching service is central to our reforms to build a banking system that works for customers."
It was found that low levels of switching in the UK current account market are a major block to competition between banks and better services for consumers.
Due to complicated, time-consuming process, about 75% of personal current account holders have never switched, with nearly one in five citing potential risks.
