The Reserve Bank of India (RBI) is launching a new feature to reduce errors and prevent fraud in online money transfers.
Starting on April 1, 2025, customers will be able to verify the name of the person they are sending money to when using RTGS (Real-Time Gross Settlement) and NEFT (National Electronic Fund Transfer).
Name Verification Feature for RTGS and NEFT
Currently, services like UPI (Unified Payment Interface) and IMPS (Immediate Payment Service) allow users to verify the recipient’s name before sending money.
The RBI aims to extend this feature to RTGS and NEFT transfers.
The National Payment Corporation of India (NPCI) has been asked to develop and implement this feature across all participating banks.
Once the system is in place, senders will be able to check the beneficiary’s name before finalizing the transfer.
This service will be available through internet banking, mobile banking, and at bank branches.
How It Works and Benefits
When sending money, the system will display the beneficiary’s name based on the account number and IFSC code entered by the sender.
This information will be pulled directly from the bank’s Core Banking Solution (CBS).
If the beneficiary’s name cannot be shown, the sender can still choose to complete the transfer. The RBI has made it clear that NPCI will not store any data from this process.
In case of disputes, the involved banks will resolve the issue using a reference number and log details.
