2 days Ago
The Reserve Bank of India (RBI) has asked banks, which are direct members or sub-members of the Real Time Gross Settlement (RTGS) System and National Electronic Funds Transfer (NEFT) System, to offer the beneficiary bank account name look-up facility by April 1, 2025. Banks will make this facility available to their customers through Internet banking and mobile banking. This facility, which will be made available to customers without any charge, will also be available to remitters visiting branches to make transactions.
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 the tRTGS or NEFT system. “Accordingly, the National Payments Corporation of India (NPCI) has been advised to develop the facility and on-board all banks,” RBI said.
RBI said to ensure that remitters using RTGS and NEFT systems can verify the name of the bank account to which money is being transferred before initiating the transfer and, thereby, avoid mistakes and prevent fraud, a solution for fetching the beneficiary’s name is being implemented. Based on the account number and IFSC of the beneficiary entered by the remitter, the facility will fetch the beneficiary’s account name from the bank’s Core Banking Solution (CBS). To ensure a uniform experience for customers, the banks will make a provision to verify the beneficiary bank account name in the Internet banking and mobile banking facilities at the time of registering a beneficiary and at the time of one-time fund transfer where the beneficiary may not be registered.
Banks will make a provision to re-verify a registered beneficiary at any time. The beneficiary account name provided by the beneficiary bank will be displayed to the remitter. In case the beneficiary name cannot be displayed for any reason, the remitter can proceed with the fund transfer, at his/ her discretion.
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