RBI Introduces Beneficiary Name Verification for RTGS and NEFT Transactions

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Overview of the New Feature:

A new feature is being introduced for RTGS and NEFT systems. This feature will allow you to check the name of the account holder (beneficiary) before transferring money, just like what is already available in UPI and IMPS systems.

Purpose of the Feature

This feature will help ensure that you’re sending money to the correct person by verifying their name before the transaction.

Who Will Implement It?

The National Payments Corporation of India (NPCI) has been asked to create this feature.

All banks that use RTGS and NEFT must offer this service to their customers.

Where Will It Be Available?

The name-check feature will be available through Internet banking, Mobile banking, and even when customers visit bank branches for transactions.

Deadline for Banks

All banks must introduce this feature by April 1, 2025.

Legal Requirement

The directive is mandatory under the Payment and Settlement Systems Act, 2007.

This new system aims to reduce errors in money transfers and improve customer confidence in digital banking.



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