Don’t miss the latest developments in business and finance.

NEFT

RBI proposes lookup facility for NEFT, RTGS; banks to comply by April 1

This facility will allow users to view and verify the name of the beneficiary before initiating a transaction, similar to the existing feature on India's real-time payment systems

Updated On: 30 Dec 2024 | 9:15 PM IST

Banks to provide beneficiary account name facility in NEFT, RTGS by Apr 1

The RBI has asked the National Payments Corporation of India to develop a facility to allow customers using online fund transfer systems, RTGS and NEFT, to verify the name of the bank account to which money is being transferred before initiating the transaction for avoiding mistakes and prevent frauds. All banks that are direct members or sub-members of Real Time Gross Settlement (RTGS) System and National Electronic Funds Transfer (NEFT) System are advised to offer this facility no later than April 1, 2025, the Reserve Bank said in a circular on Monday. Currently, the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) systems enable a remitter to verify the name of the beneficiary before initiating a 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," it said. RBI has advised the National Payments Corporation of Indi

Updated On: 30 Dec 2024 | 8:11 PM IST

Delhi HC asks RBI to expedite system to verify receiver name in RTGS, NEFT

In a significant ruling, the Delhi High Court has asked the Reserve Bank of India to expeditiously activate the process of verifying the receiver's name in RTGS and NEFT payment methods Justice Pratibha M Singh said such a system was crucial to prevent cyber frauds and a delay could likely impact thousands of innocent consumers who made payments without realising who the beneficiary was. The system shall be implemented by all banks, it said. The court was hearing a batch of pleas over the misuse of trademark of several entities by fraudulent websites to dupe innocent people. "Steps being taken by the RBI for implementation of the said Beneficiary's Name Lookup Facility for RTGS and NEFT transactions are extremely crucial to prevent cyber fraud like the kind of fraudulent activity that are being dealt with in this case. The RBI shall, without any delay, create the said facility referred to as, Beneficiary's Name Lookup Facility," said the court on December 21. The court said a dela

Updated On: 30 Dec 2024 | 7:10 PM IST

LIC's unclaimed maturity amounts at Rs 881 cr in FY24: Govt tells LS

Life Insurance Corporation (LIC) has unclaimed maturity amounts of Rs 880.93 crore in 2023-24, Parliament was informed on Monday. As many as 3,72,282 policyholders did not claim maturity benefits during FY2024, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha. During the previous year, he said, the amount worth Rs 815.04 crore belonging to 3,73,329 policyholders remained unclaimed. As many as 10 death claims worth Rs 14 lakh remained unclaimed during 2023-24, he said. In order to reduce the Unclaimed and Outstanding Claims, LIC has undertaken several measures, including print media and digital media advertisement apart from radio jingles for policyholders to claim their due amounts. Outstanding amounts lying in unclaimed accounts are settled in favour of respective policyholders or claimants upon receipt of claim request, he said. Reminder letters are sent through ordinary/speed post as well as through email where available and also SMS are

Updated On: 16 Dec 2024 | 6:34 PM IST

RBI offices, bank branches for govt biz to stay open on Mar 30& 31

Special clearing operations for cheques

Updated On: 22 Mar 2024 | 6:36 PM IST

RBI offices dealing with govt business to remain open on March 30, 31

RBI offices dealing with government business and all designated branches of agency banks will keep their counters open as per normal working hours on Saturday and Sunday for the convenience of taxpayers. Electronic transactions can be done till the stipulated time on both days (March 30 and March 31), the Reserve Bank said in a statement on special measures for the current financial year (2023-24), in wake of annual closing of government accounts. "Transactions through National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) System will continue up to 2400 hours as hitherto on March 31, 2024," it said with a view to provide greater convenience to taxpayers. In order to facilitate government receipts and payments, necessary arrangements have also been made to conduct special clearing operations across the country, it added. "Special clearing will be conducted for government cheques both on March 30 and 31, 2024. Agency banks are hereby advised that all cheques

Updated On: 22 Mar 2024 | 4:55 PM IST

RBI makes changes in NEFT, RTGS for daily reporting of foreign remittances

With the Home Ministry mandating SBI to report all details of overseas donors, including purpose of remittances on daily basis, the Reserve Bank of India (RBI) on Thursday made necessary changes in NEFT and RTGS systems for Foreign Contribution (Regulation) Act (FCRA) related transactions. Under the FCRA, foreign contributions must be received only in the "FCRA account" of State Bank of India (SBI), New Delhi Main Branch (NDMB). The contributions to the FCRA account are received directly from foreign banks through SWIFT and from Indian intermediary banks through NEFT and RTGS systems. In a circular, the RBI said in terms of extant requirements of the Ministry of Home Affairs (MHA), the donor details such as name, address, country of origin, amount, currency, and purpose of remittance are required to be captured in such transactions and SBI is required to report the same to MHA on daily basis. "...necessary changes have been introduced in NEFT and RTGS systems," RBI said, adding the

Updated On: 16 Feb 2023 | 10:06 PM IST

Delhi HC seeks RBI response on implementation of Uniform Banking Code

Court also asks Centre to file a reply in the case in six weeks; next hearing on March 20

Updated On: 05 Dec 2022 | 9:32 PM IST

CBDC more anonymous than traditional e-transactions: IDFC First Bank CEO

In CBDC, the core banking will have a one-time debit for currency purchase, but all subsequent transactions, which move from wallet to wallet

Updated On: 29 Nov 2022 | 11:47 PM IST

RBI moots 'tiered' charge on payments through UPI, seeks public feedback

The RBI has asked for feedback and suggestions before October 3

Updated On: 21 Aug 2022 | 8:29 PM IST

RBI seeks public feedback on charges in payment systems by Oct 3

Charges for payment services should be reasonable and competitively determined for users while also providing optimal revenue stream for the intermediaries, states the discussion paper

Updated On: 17 Aug 2022 | 9:15 PM IST

Banks to conduct special clearing ops on Mar 31 for govt accounts' closure

The Reserve Bank has issued directions to the banks for smooth clearing operation and asked them to participate in it

Updated On: 24 Mar 2022 | 8:56 PM IST

Volume Icon

What is NEFT and how it works?

National Electronic Fund Transfer, or NEFT, is now a preferred mode of transaction for everyone. The RBI-managed NEFT has made near-real-time movement of funds easy. But how does the system operate?

Updated On: 16 Mar 2022 | 8:45 AM IST

Volume Icon

TMS Ep129: KYC challenges, digital transactions, Raamdeo Agrawal, NEFT

What are the KYC challenges facing financial institutions? How have digital transactions changed in India? What opportunity does Raamdeo Agrawal see in markets? What is NEFT? All answers here

Updated On: 16 Mar 2022 | 8:00 AM IST

Statsguru: From UPI to IMPS, mapping digital transactions in India

Wallets have also made a comeback, with rising transaction volumes

Updated On: 14 Mar 2022 | 6:10 AM IST

RBI allows wallets, white label card networks to access RTGS, NEFT systems

Centralised Payment Systems' access will also help lower cost of payments for non-banks, reduce their dependence on banks, says RBI

Updated On: 28 Jul 2021 | 10:31 PM IST

Digital Payment transactions decline in May from March-April levels

Cash withdrawal through ATMs, transactions through NEFT and RTGS also decline

Updated On: 02 Jun 2021 | 12:54 AM IST

Bank NEFT transfers will not be operational coming weekend

If you planning an online money transfer using the banking system between Saturday midnight and Sunday, you are well advised to either cancel or postpone such transfers

Updated On: 17 May 2021 | 1:30 PM IST

E-wallets are similar to bank accounts, but more convenient: Experts

Will help those who can't ensure minimum balance

Updated On: 09 Apr 2021 | 6:10 AM IST

RBI decides to open up RTGS, NEFT facilities for payment system operators

In a major move in the online payments segments, the RBI has decided to allow payment system operators to take direct membership of Centralised Payment Systems (CPS), such as RTGS and NEFT

Updated On: 07 Apr 2021 | 1:52 PM IST