Banks to Provide Beneficiary Account Name Look-up for NEFT, RTGS by April 1, 2025

Banks to Provide Beneficiary Account Name Look-up for NEFT, RTGS by April 1, 2025
News
The Reserve Bank of India (RBI) has instructed the National Payments Corporation of India (NPCI) to develop a facility enabling customers to verify the beneficiary's account name before transferring funds via NEFT and RTGS.

Purpose:
This initiative aims to minimize transfer errors and prevent fraud by ensuring the accuracy of the recipient's details before completing transactions.

• Implementation Deadline:
  All banks participating in the NEFT and RTGS systems must provide this service by April 1, 2025.

How It Works:

• The system will fetch the beneficiary’s account name using the account number and IFSC entered by the remitter.
• The remitter can proceed at their discretion if the name cannot be displayed.
• This facility will be available for internet banking, mobile banking, and branch transactions.
• No Additional Charges:
  Banks must offer this service free of charge to their customers.
• Data Security:
  The NPCI will not store any data related to this facility. Disputes will be resolved between the remitting and beneficiary banks using unique reference numbers and logs.