Type of Document: Notification
Notification Date: 30-Dec-2024
Relevant Act(s)/Rule(s): Reserve Bank of India, 1934
Circular No.: RBI/2024-25/99 CO.DPSS.RPPD.No.S987/04.03.001/2024-25
Background: Currently, systems like UPI and IMPS allow users to verify beneficiary details before initiating a transfer, reducing errors and fraud. However, RTGS and NEFT systems did not have a similar facility, which sometimes led to mistakes and issues with fund transfers. To address this gap and enhance the security and accuracy of transactions, RBI has proposed the introduction of the beneficiary name look-up feature for RTGS and NEFT transactions.
Objective: To resolve this, the RBI has instructed NPCI to develop a system that will fetch the beneficiary’s name based on the account number and IFSC provided by the remitter. This feature will be available across multiple platforms:
Internet Banking: Remitters will be able to verify the beneficiary’s name while registering beneficiaries and during one-time fund transfers.
Mobile Banking: Similar to internet banking, mobile banking will support the facility for user verification.
Branch Transactions: Customers visiting branches for RTGS and NEFT transfers will also be able to use the facility.
Banks must ensure the system is fully functional by the deadline of April 1, 2025, ensuring a smoother transaction process and reducing errors and fraud.
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