Mon Dec 30 20:50:53 UTC 2024: **RBI Mandates Name Verification for RTGS and NEFT Transfers**
**Mumbai, December 31, 2024** – The Reserve Bank of India (RBI) has directed the National Payments Corporation of India (NPCI) to implement a new beneficiary name verification system for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) transactions by April 1, 2025. This move aims to reduce errors and prevent fraud.
Currently, UPI and IMPS systems already offer this feature, allowing users to confirm the recipient’s name before transferring funds. The RBI’s mandate extends this functionality to RTGS and NEFT, requiring all participating banks to provide name verification via internet and mobile banking, as well as in-branch transactions.
The system will retrieve the beneficiary’s account name from the bank’s Core Banking Solution (CBS) using the account number and IFSC code. While the RBI emphasizes that the NPCI will not store any related data, banks will be responsible for resolving any disputes. Importantly, this name verification service will be free for all users. The RBI’s circular clarifies that if the beneficiary’s name cannot be displayed for any reason, the remitter can still proceed with the transaction at their discretion.
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