RBI MPC Meeting: RBI to introduce beneficiary account name lookup facility for RTGS and NEFT systems to reduce chances of wrong credit and fraud

RBI MPC Meeting: Bank customers will be able to check the name of the beneficiary while transferring funds through RTGS and NEFT.

RBI MPC Meeting: Many times bank customers transfer money to the wrong account while transferring money online through RTGS and NEFT. But soon such mistakes made by bank customers will be reduced and fraud will also be curbed. Reserve Bank of India has decided to enable the funds remitter i.e. the person transferring the money to verify the name of the receiver i.e. the beneficiary account holder before executing the transaction for Real Time Gross Settlement System and National Electronic Funds Transfer. RBI has decided to start the beneficiary account name look-up facility.

UPI and IMPS have the facility of verification of beneficiary

Currently, whenever money is transferred through UPI or Immediate Payment Service (IMPS), the Remitter of Funds i.e. the one who is transferring the money has the option to verify the name of the receiver or beneficiary before making the payment transaction. But this facility was not available in RTGS (Real Time Gross Settlement System) or NEFT (National Electronic Funds Transfer) system.

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Verification of beneficiary will be possible in RTGS-NEFT

In his address after the Monetary Policy Committee meeting, Reserve Bank of India Governor Shaktikanta Das said, now it is proposed to start such a facility similar to UPI and IMPS (Immediate Payment Service) for transferring funds through Real Time Gross Settlement System and National Electronic Funds Transfer. The RBI Governor said that, after the introduction of this facility, remitters will be able to verify the name of the account holder before transferring funds through RTGS or NEFT. This will reduce the chances of crediting funds to the wrong account and will also curb fraud.

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