The Reserve Bank of India (RBI) announced on Monday the introduction of a beneficiary bank account name verification feature for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. Scheduled for implementation by April 1, 2025, this facility will enable remitters to confirm the beneficiary’s name before initiating a transaction, minimizing errors and fraud risks.
Currently, systems like the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) allow remitters to verify the beneficiary’s name prior to completing a transaction. The new feature will bring similar functionality to RTGS and NEFT, ensuring that the name provided by the sender aligns with the beneficiary’s account details, the RBI stated in an official circular.
Discussion about this post