The Reserve Bank of India (RBI) has announced that all banks providing Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) services must implement a beneficiary account name lookup feature by April 1, 2025. This initiative is designed to improve the security and accuracy of digital fund transfers, enabling senders to verify the beneficiary’s account name before finalizing transactions.
Currently, payment systems such as Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) allow senders to confirm the beneficiary’s name before making a transfer. The RBI’s new requirement extends this capability to RTGS and NEFT systems, helping to minimize the chances of incorrect transfers and potential fraud. As per the RBI’s notification, senders will enter the beneficiary’s account number and the bank’s Indian Financial System Code (IFSC), after which the beneficiary’s name will be fetched from the bank’s Core Banking Solution (CBS). This feature will be available through internet banking, mobile banking, and for customers making transactions at bank branches.
In an official statement, the RBI highlighted the importance of allowing remitters using RTGS and NEFT systems to verify the name of the bank account before initiating a transfer. This measure aims to reduce errors and prevent fraud, and a solution for retrieving the beneficiary’s name is currently being implemented.
The RBI has assigned the National Payments Corporation of India (NPCI) with the task of creating the necessary technical infrastructure to support this feature, ensuring that all banks are integrated by the set deadline. This initiative is anticipated to enhance customer confidence in digital payment systems and bring RTGS and NEFT services in line with the verification features already available in UPI and IMPS platforms.
By introducing the beneficiary account name lookup facility, the RBI seeks to improve the safety and reliability of electronic fund transfers, thereby building greater trust in the nation’s digital banking framework. Customers can expect a more secure and user-friendly experience when making high-value transactions through RTGS and NEFT systems.
BY – NIKITA
