Many times, bank customers accidentally send money to the wrong account when transferring funds online through RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer).
However, soon such mistakes will decrease, and fraud cases will also be reduced.
The Reserve Bank of India (RBI) has decided to introduce a new feature where the person transferring the money (remitter) can check the name of the account holder (beneficiary) before completing the transaction.
This is known as the “beneficiary account name look-up facility.”
UPI and IMPS Already Offer Beneficiary Verification
Currently, when people transfer money using UPI (Unified Payments Interface) or IMPS (Immediate Payment Service), they have the option to verify the name of the recipient before finalizing the payment.
However, this feature was not available for RTGS and NEFT transfers until now.
Beneficiary Name Verification to Be Added for RTGS and NEFT
In his speech after the Monetary Policy Committee meeting, RBI Governor Shaktikanta Das announced that a similar name verification feature, like the one in UPI and IMPS, will soon be available for RTGS and NEFT transfers.
This will allow people to check the name of the beneficiary before sending money, reducing the chances of errors and helping to prevent fraud.
Easier and Safer Transfers with RTGS and NEFT
During a recent address following the Monetary Policy Committee meeting, RBI Governor Shaktikanta Das announced the introduction of the beneficiary verification system for RTGS and NEFT.
This will work similarly to UPI and IMPS.
With this facility in place, the remitter will be able to check the name of the account holder before transferring funds, reducing the chances of mistakes and helping to prevent fraud.
