The Reserve Bank of India (RBI) has introduced a new system to avoid mistakes and fraud in online money transfers.
Starting from April 1, 2025, customers will be able to check the name of the bank account they are sending money to, when using RTGS (Real-Time Gross Settlement) and NEFT (National Electronic Fund Transfer).
Facility for Name Verification Before Sending Money
Currently, people using UPI (Unified Payment Interface) or IMPS (Immediate Payment Service) can verify the name of the person they are sending money to.
The RBI wants to introduce this same option for RTGS and NEFT transfers. They have asked the National Payment Corporation of India (NPCI) to develop this feature and make sure it is available for all participating banks.
This new system will allow senders to verify the beneficiary’s name before completing a money transfer.
Banks will offer this service through internet banking and mobile banking. Customers who visit bank branches will also be able to use this service when making transfers.
How the Name Verification Will Work
This feature will help reduce mistakes and prevent fraud. When sending money, the system will display the name of the beneficiary’s account, which is pulled from the bank’s Core Banking Solution (CBS).
This will happen after the sender enters the account number and IFSC code of the beneficiary.
If the beneficiary’s name cannot be shown for any reason, the sender can still choose to complete the transaction. The RBI has clarified that NPCI will not store any data related to this system.
In case of any disputes, the banks involved will resolve the issue using a reference number and log details.
Best of all, this service will be free for all customers.
