New Delhi, December 30 (IANS). The Reserve Bank of India (RBI) on Monday directed all banks to provide the facility to the remitter to verify the name of the beneficiary’s bank account before initiating the transaction using RTGS or NEFT system.
With this step of the central bank, transactions through RTGS and NEFT will become more secure.
To implement this facility, RBI has given a deadline of April 1, 2025 to all banks.
“All banks which are direct members or sub-members of RTGS and NEFT are advised to provide this facility before April 1, 2025,” the RBI circular said.
With the introduction of this facility, the remitter can input the beneficiary’s account number and branch IFSC code, after which the beneficiary name will be displayed.
This facility will increase confidence among customers as it will reduce the chances of bad credit and fraud.
The introduction of beneficiary bank account name look-up facility for Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems was proposed by the RBI in the Developmental and Regulatory Policies issued on October 9, 2024.
RTGS is a real-time payment system. In this, money can be easily transferred in real time without any delay. This facility is available 24/7. The minimum limit for doing transactions in this is Rs 2 lakh.
NEFT is also a payment system. In comparison to RTGS transactions, it takes some time for the money to reach the beneficiary. This may range from a few minutes to a few hours. There is no minimum limit for transactions.
At present, a person sending money can verify the name of the beneficiary in the Unified Payments Interface (UPI) and Immediate Payments Services (IMPS) system.
RBI has taken this decision because there was a demand for the facility to verify the name of the beneficiary like payment systems like UPI and IMPS for Real Time Gross Settlement System (RTGS) and National Electronic Fund Transfer (NEFT) system.
–IANS
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