In a significant update, Reserve Bank of India (RBI) Governor Shaktikanta Das announced during the Monetary Policy Committee (MPC) meeting that a new feature is being introduced for RTGS and NEFT transactions.
This feature, similar to the one available in UPI and IMPS, will allow users to see the name of the recipient before completing a payment.
The introduction of this feature aims to reduce errors of transferring money to incorrect accounts.
Key Feature: Beneficiary Account Name Look-up
The beneficiary account name look-up facility will allow users to view the name of the person or entity they are sending money to before completing the transaction.
To use this feature, the sender needs to enter the account number and IFSC code of the recipient.
The system will then display the name of the account holder, helping reduce instances of wrong account transfers and increasing customer confidence.
How It Helps:
Reduces the chances of money being sent to incorrect accounts.
Helps avoid the hassle of approaching banks or engaging in legal battles to retrieve misdirected funds.
Aims to curb fraudulent activities in online transactions.
Stable Repo Rate:
In addition to this announcement, the RBI Governor confirmed that the repo rate will remain unchanged at 6.50%, as expected by 5 out of 6 members of the MPC.
This means EMI rates on home loans, auto loans, and other types of loans will not see any reduction for now. The last repo rate hike was in February 2023, when it was raised by 0.25% to the current rate.
