RBI Update – Introduction of beneficiary bank account name look-up facility for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) Systems

Banks which are participants of RTGS and NEFT Systems, shall make this facility available to their customers through Internet banking and Mobile banking. The facility shall also be available to remitters visiting branches for making transactions.

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 shall be made available to remitters through Internet banking and Mobile banking.  The facility shall also be available to remitters visiting branches for making transactions.

To ensure uniform experience for customers, the banks shall adhere to the instructions given below:

1. Provision to verify beneficiary bank account name shall be provided in Internet banking and Mobile banking facilities at the time of registering a beneficiary and at the time of one-time fund transfer where the beneficiary may not be registered.
2. Provision to re-verify a registered beneficiary at any time shall also be provided.
3. Beneficiary account name provided by the beneficiary bank shall be displayed to the remitter.
4. In case the beneficiary name cannot be displayed for any reason, the remitter can proceed with the fund transfer, at her discretion.
5. Specific alert messages as provided in the technical document, issued earlier by NPCI, shall be displayed to the remitter.

Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12759&Mode=0