The Central Bank has proposed a significant enhancement to its Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems by introducing a beneficiary name verification feature. This move follows similar functionalities already available in other payment systems like UPI and IMPS, where remitters can verify the receiver's name before initiating a transaction.
During a statement issued after the Monetary Policy Committee meeting, Central Bank Governor Shaktikanta Das announced the plan to introduce a "beneficiary account name look-up facility." Under this system, remitters will be able to input the beneficiary's account number and IFSC code, and the name of the beneficiary will be displayed before completing the transaction. This measure aims to reduce the likelihood of incorrect fund transfers and fraudulent activities, enhancing customer confidence in digital payments. Detailed guidelines for the implementation of this facility are expected to be issued separately.
Commentaires