RBI Mandates Name Verification for RTGS and NEFT Transfers

The Reserve Bank of India has directed the National Payments Corporation of India to develop a feature allowing customers to verify bank account names for RTGS and NEFT transfers. This is part of efforts to reduce errors and prevent fraud. Banks must implement this feature by April 1, 2025.


Devdiscourse News Desk | Mumbai | Updated: 30-12-2024 18:32 IST | Created: 30-12-2024 18:32 IST
RBI Mandates Name Verification for RTGS and NEFT Transfers
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The Reserve Bank of India (RBI) has instructed the National Payments Corporation of India (NPCI) to devise a system that permits customers using online fund transfer services, RTGS and NEFT, to confirm the recipient's bank account name prior to transaction initiation. This measure aims to minimize errors and avert fraud.

According to a circular issued on Monday, all banks participating in the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems must introduce this facility by April 1, 2025. Presently, similar services are available through the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS).

The RBI clarified that the NPCI would be responsible for developing this facility and integrating it with all banks. It will be accessible via Internet and mobile banking, as well as in physical branches. The process involves fetching the beneficiary's name using the provided account number and IFSC, ensuring accuracy before transaction completion.

(With inputs from agencies.)

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