The Reserve Bank of India (RBI) has announced significant changes to payment systems like RTGS and NEFT. Now, before sending money, you will be able to verify if you are sending it to the correct person. This feature has already been available in UPI and IMPS. RBI Governor Shaktikanta Das mentioned this decision was made after the Monetary Policy Committee (MPC) meeting to enhance customer safety and prevent fraud. He stated that a ‘Beneficiary Account Name Look-Up Facility’ would be introduced for RTGS and NEFT transactions.
How Will This Facility Work?
With this feature, the sender will be able to enter the account number and IFSC code to confirm whose account it is. Shaktikanta Das explained, “Accordingly, we propose to introduce the ‘Beneficiary Account Name Look-Up Facility’ to enable the person sending money via RTGS and NEFT to verify the beneficiary account holder’s name before initiating the transfer.”
Reduced Risk of Fraud
Das further explained that this facility would enhance customer trust and reduce the likelihood of incorrect transfers and fraud. He said, “The sender can enter the beneficiary’s account number and branch IFSC code. After this, the beneficiary’s name will be displayed. This feature will increase customer confidence, as it will reduce the chances of wrong credits and fraud.”
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Detailed guidelines on this will be released soon. The central bank also maintained its key interest rate, the repo rate, on Wednesday, but took the first step towards cutting rates by shifting its relatively aggressive stance to a ‘neutral’ position.