In a significant move to enhance the security and transparency of digital transactions, the Reserve Bank of India (RBI) has announced the introduction of a beneficiary account name look-up facility for the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. This new feature will allow remitters to verify the name of the beneficiary before initiating a transaction.
The facility, expected to be available by 1st April, 2025, aims to bring the RTGS and NEFT systems in line with the existing systems like the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS), which already allow users to verify beneficiary details before processing payments. The new look-up service will give users an added layer of security, reducing the likelihood of errors or fraudulent transactions.
The National Payments Corporation of India (NPCI) has been tasked with developing the facility and ensuring that all participating banks are onboarded. The service will be accessible through internet banking and mobile banking platforms, and also for those visiting branches to complete transactions.
The move aligns with RBI’s ongoing efforts to make digital transactions more secure and user-friendly, helping to safeguard the interests of both individual customers and businesses. All banks participating in the RTGS and NEFT systems are expected to implement this facility by 1st April, 2025, ensuring a smooth transition for users.
