RBI Introduces Beneficiary Name Verification for RTGS and NEFT Transactions
There is good news for regular users of RTGS and NEFT. Customers will now be protected from accidentally sending money to the wrong account. The Reserve Bank of India (RBI) has instructed all banks to implement a new facility that allows customers to see the beneficiary’s name before completing a transaction. This initiative aims to reduce incorrect transactions and enhance the user experience.
Implementation Timeline
Currently, customers can verify the beneficiary’s name when sending money through UPI and IMPS. Now, a similar feature will be available for RTGS and NEFT transactions. The RBI announced on December 30 that banks must implement this system by April 1, 2025. The National Payments Corporation of India (NPCI) has been tasked with developing this facility. Once ready, banks will integrate it into their internet banking and mobile banking platforms. Additionally, customers visiting bank branches for transactions will also have access to this feature.
How the New System Works
While transacting via RTGS or NEFT, customers will enter the beneficiary’s account number and the IFSC code of the recipient’s bank branch. The system will then display the beneficiary’s name. Customers can verify the name and confirm the transaction only if the details are accurate.
Benefits to Customers
This new system will significantly benefit customers by minimizing the chances of money being transferred to the wrong account due to errors in account numbers or IFSC codes. It will also help reduce fraud cases and build greater trust in digital banking systems. With this step, the RBI aims to make digital banking safer and more convenient for all Indians.
