The Reserve Bank of India (RBI) has announced a new beneficiary account name verification feature for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems, requiring implementation by all member banks by April 1, 2025. The initiative strengthens India’s expanding digital payments infrastructure, which has seen significant security enhancements in recent years.
The initiative requires banks to display beneficiary account names to customers before completing RTGS and NEFT transactions. The verification system will be accessible through internet banking, mobile banking platforms, and at bank branches for in-person transactions. The RBI has specified that this service must be provided to customers at no additional cost, supporting its broader efforts to promote accessible digital financial services.
Under the new system, when initiating an RTGS or NEFT transfer, customers will enter the recipient’s account number and IFSC code as usual. The system will then display the beneficiary’s name for verification before the transaction proceeds. If the system cannot display the beneficiary name, customers will retain the option to continue with the transfer. The approach supports India’s broader initiatives to combat digital payment fraud through enhanced verification measures.
The measure extends verification capabilities already present in India’s Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) to RTGS and NEFT platforms. The implementation applies to both direct members and sub-members of these payment systems, marking a significant expansion of India’s payment security infrastructure. The development follows the RBI’s recent expansion of UPI functionality to include digital wallets and prepaid cards, demonstrating the central bank’s commitment to comprehensive payment system modernization.
The enhancement represents another step in the RBI’s ongoing efforts to strengthen the security and accuracy of digital transactions in India’s banking system. The verification feature aims to reduce instances of incorrect transfers while providing customers with additional confirmation of transaction details before finalizing payments. The mandate is part of a broader series of authentication and verification system updates scheduled for implementation across India’s financial sector in 2025.
Sources: APAC News Network, Times Now News, Paytm Blog
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