RBI proposes beneficiary name verification for RTGS and NEFT transactions

The Reserve Bank of India (RBI)  has proposed to provide a facility to the remitter to verify the name of the receiver (beneficiary) before initiating a payment transaction in Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

Payment Systems like UPI and IMPS provide a facility to the remitter to verify the name of the receiver before initiating a payment transaction.

The RBI move comes after several requests to introduce a similar facility for RTGS and NEFT systems too.

In a statement issued after Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said, “Accordingly, to enable remitters in RTGS and NEFT to verify the name of the beneficiary account holder before initiating funds transfer, it is now proposed to introduce a ‘beneficiary account name look-up facility’.”

Das added, “Remitters can input the account number and the branch IFSC code of the beneficiary, following which the name of the beneficiary will be displayed. This facility will increase customer confidence as it would reduce the possibility of wrong credits and frauds. Detailed guidelines will be issued separately.”