RBI has asked National Payments Corporation of India to develop this facility.
Bank account holders are going to get a new facility in fund transfer from April 1 in the new year. Customers using online fund transfer systems, RTGS and NEFT are going to get the facility to verify the name of the bank account before initiating the transaction to avoid mistakes and prevent frauds. According to PTI news, the Reserve Bank of India (RBI) on Monday has asked the National Payments Corporation of India to develop this facility.
What is said in the circular issued
According to the news, the central bank has said in the circular issued on December 30 that all the banks which are direct members or sub-members of Real Time Gross Settlement (RTGS) System and National Electronic Fund Transfer (NEFT) System will have to do so by April 1, 2025. It has been advised to provide this facility before. Currently, the UPI and IMPS systems enable the person sending funds (the sender) to verify the name of the beneficiary before initiating the transfer.
Advice to include all banks in this
It has been decided to introduce a similar facility enabling the remitter to verify the name of the beneficiary’s bank account before initiating the transaction using the RTGS or NEFT system, the circular said. RBI has advised National Payments Corporation of India (NPCI) to develop this facility and include all banks in it. It has been said that the participating banks in RTGS and NEFT system will provide this facility to their customers through internet banking and mobile banking. This facility will also be available to remitters who transact by visiting branches.
It was also said in the RBI circular
The RBI circular said that to ensure that remitters using RTGS and NEFT systems are able to verify the name of the bank account to which funds are being transferred before initiating the transfer (Money Remitter Transfer) and To avoid such mistakes and prevent frauds, a solution is being implemented to get the beneficiary name. Based on the beneficiary’s account number and IFSC entered by the remitter, the facility will fetch the beneficiary’s account name from the Bank’s Core Banking Solution (CBS). The beneficiary account name provided by the beneficiary bank will be shown to the remitter.
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