Introduction of Beneficiary Bank Account Name Lookup Facility for RTGS and NEFT Systems. Currently, the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) systems allow senders to verify the beneficiary's name before completing a transfer. In an effort to improve security and prevent errors, a similar feature will be introduced for the Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. This will enable senders to verify the beneficiary's bank account name before initiating a transaction. The National Payments Corporation of India (NPCI) has been instructed to develop this feature and ensure its implementation across all participating banks.
Key Details:
Banks that are participants in RTGS and NEFT systems will offer this facility to their customers via Internet banking and mobile banking. This service will also be available to customers who visit branches for in-person transactions.
All RTGS and NEFT direct or sub-member banks are required to implement this feature by April 1, 2025.
How the Facility Works:
The new feature will allow senders to verify the beneficiary’s name by entering the account number and IFSC code of the beneficiary. The system will fetch the beneficiary’s name from the bank’s Core Banking Solution (CBS).
This facility will be accessible through both Internet banking and Mobile banking platforms. Additionally, customers visiting bank branches will be able to access this service.
Instructions for Banks:
Banks must provide an option to verify the beneficiary's bank account name when registering a new beneficiary or making a one-time transfer to an unregistered beneficiary.
A re-verification option should be available for registered beneficiaries at any time.
The beneficiary’s account name, as provided by the bank, will be displayed to the sender.
If the beneficiary's name cannot be fetched, the sender can proceed with the transfer at their discretion.
Specific alert messages, as outlined in the technical guidelines provided by NPCI, must be displayed to the sender.
Data Management and Security:
Both the sending and receiving banks are required to maintain logs of all queries, responses, and activities related to the name lookup process.
NPCI will not store any data related to this service. In case of a dispute, the sending and receiving banks will use the unique lookup reference number and related logs to resolve the issue.
Cost-Free Service:
This beneficiary account name lookup facility will be provided to customers at no extra charge.
All participating banks in the RTGS and NEFT systems are encouraged to implement this feature by April 1, 2025 to ensure a safer and more efficient transaction process for customers.