Gone are the days when one would wonder if they have entered the correct name of recipient, or IFSC code while making an RTGS or NEFT transaction.
In a recent notification, the Reserve bank of India (RBI) has said that it has introduced the beneficiary bank account name look-up facility for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems.
Just Like UPI
“Currently, the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) systems enable a remitter to verify the name of the beneficiary before
initiating transfer. It has been decided to put in place a similar facility that would enable a remitter to verify the beneficiary bank account name before initiating a transaction using RTGS or NEFT system. Accordingly, National Payments Corporation of India
(NPCI) has been advised to develop the facility and onboard all banks,” the central bank added.
All banks that are currently participants of RTGS and NEFT systems will make this facility available, no later than April 1, 2025, to their customers through Internet banking and Mobile banking.
What Is The Objective Behind This Move?
RBI has made this move as a part of strengthening its digital banking systems which was decided, much earlier, in October 2024.
This has also been done to ensure that remitters that are using RTGS and NEFT systems can verify the name of the beneficiary, so as to prevent frauds and avoid mistakes.
Based on the account number entered by the remitter, the facility will fetch the beneficiary’s account name from the bank’s Core Banking Solution (CBS).
