In a significant step towards enhancing digital payment security, the Reserve Bank of India (RBI) has announced the implementation of a beneficiary bank account name verification feature for Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. The facility will allow remitters to confirm the beneficiary’s account name before initiating 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 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. Accordingly, National Payments Corporation of India (NPCI) has been advised to develop the facility and onboard all banks.
Banks which are participants of RTGS and NEFT Systems, will have to make this facility available to their customers through Internet banking and Mobile banking. The facility will also be available to remitters visiting branches for making transactions. The RBI has advised all banks who are direct members or sub-members of RTGS and NEFT to offer this facility no later than April 1, 2025.
