RBI to Launch Name Verification Feature for RTGS and NEFT Transfers to Cut Wrong Payments

The Reserve Bank of India (RBI) has announced a new feature that will help people verify the name of the person they’re sending money to before completing a payment through RTGS and NEFT. This change, similar to what’s already available in UPI and IMPS, aims to reduce the number of incorrect money transfers.

RBI Governor Shaktikanta Das shared this information during the Monetary Policy Committee meeting on October 9, 2024.

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What Is the New Feature?

The new “beneficiary account name look-up facility” will let users check the name linked to an account before making a transfer. Remitters will need to enter the recipient’s account number and branch IFSC code to see the beneficiary’s name. This feature is designed to boost customer confidence by lowering the chances of wrong payments and fraud. Detailed instructions will be provided later.

Why This Matters

Currently, UPI and IMPS allow users to verify a recipient’s name before sending money. Now, the RBI wants to offer this same protection for RTGS and NEFT transactions.

Understanding IMPS and RTGS Transfers

What is IMPS?

Immediate Payment Service (IMPS) allows users to send money quickly through mobile banking using either the recipient’s mobile number and MMID or their account number and IFSC code.

Steps to Use IMPS:

1. Log in to your bank’s app.
2. Choose IMPS or Funds Transfer.
3. Enter the recipient’s mobile number or account details.
4. Input the amount and your MPIN.
5. Review and confirm the transfer.

How to Use RTGS:

To send money via RTGS, you need to provide:

• The amount.
• Your account number.
• The beneficiary’s name and account number.
• The purpose of the payment.
• The IFSC code for the bank branch.

Steps to Use RTGS:

1. Log in to your bank’s net banking or mobile app.
2. Select RTGS under fund transfer.
3. Add the beneficiary.
4. Enter the amount.
5. Confirm the transaction using an OTP and click Submit.

This new feature from the RBI aims to make money transfers safer and more reliable for everyone.