Beneficiary Name Look-up Facility in NEFT, RTGS by 1st April: RBI
Moneylife Digital Team 30 December 2024
While asking the National Payments Corporation of India (NPCI) to develop a facility to allow customers to use online fund transfer systems in real-time gross settlement (RTGS) and national electronic funds transfer (NEFT), the Reserve Bank of India (RBI) has advised banks to offer the name look-up facility to customers from 1 April 2025. In its October 2024 monetary policy, RBI introduced beneficiary account name lookup facility for NEFT and RTGS money transfers. 
 
At present, unified payments interface (UPI) and immediate payments service (IMPS) systems enable a remitter to verify the beneficiary's name before initiating a transfer.
 
In a circular, RBI says, "To ensure that remitters using RTGS and NEFT systems can verify the name of the bank account to which money is being transferred before initiating the transfer and thereby avoid mistakes and prevent frauds, a solution for fetching the beneficiary's name is being implemented. Based on the account number and IFSC of the beneficiary entered by the remitter, the facility will fetch the beneficiary's account name from the bank's core banking solution (CBS)."
 
"This facility should be made available to remitters through internet banking and mobile banking. The facility should also be available to remitters visiting branches for making transactions," it added.
 
Further, RBI says banks that are direct members or sub-members of RTGS and NEFT are advised to offer this facility no later than 1 April 2025. 
 
The name lookup facility for NEFT and RTGS will enable the remitter to verify the name of the account-holder before effecting funds transfer to him/her. This will also reduce the possibility of wrong credits and fraud.
 
Comments
r_ashok41
2 weeks ago
looks like a good initiative
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