Date: 2024-12-30Category: Not ApplicableState: Union GovernmentCountry: India
Introduction of beneficiary bank account name look-up facility for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) Systems
Executive Summary:
This document from the Reserve Bank of India (RBI) introduces a beneficiary bank account name lookup facility for RTGS and NEFT systems, similar to that available in UPI and IMPS. NPCI has been instructed to develop this facility and onboard all banks. Participating banks must offer this facility to customers via Internet banking, mobile banking, and branch visits by April 1, 2025.
Key Points / Main Content:
* **Purpose:** To enable remitters to verify the beneficiary bank account name before initiating RTGS or NEFT transactions, reducing errors and preventing fraud.
* **Implementation:**
* NPCI will develop the facility and onboard all banks.
* The facility will fetch the beneficiary's account name from the bank's Core Banking Solution (CBS) using the account number and IFSC.
* **Availability:**
* The facility must be available through Internet banking, Mobile banking, and at bank branches.
* Remitters should be able to verify the beneficiary's name when registering a beneficiary and during one-time fund transfers.
* A provision to re-verify a registered beneficiary at any time must be provided.
* **Display and Alerts:**
* The beneficiary account name provided by the beneficiary bank must be displayed to the remitter.
* If the name cannot be displayed, the remitter can proceed at their discretion.
* Specific alert messages, as per NPCI's technical document, must be displayed.
* **Data Handling and Dispute Resolution:**
* Remitting and beneficiary banks must preserve detailed logs of all queries, responses, and activities.
* NPCI will not store any data related to the facility.
* Disputes will be resolved by the remitting and beneficiary banks based on the unique lookup reference number and logs.
* **Compliance and Costs:**
* Banks must comply with legal provisions related to data privacy.
* The facility must be provided to customers free of charge.
* **Deadline:** All direct and sub-member banks of RTGS and NEFT must offer this facility by April 1, 2025.
Impact Analysis:
* **Banks (RTGS and NEFT Participants):**
* Impact: Banks must integrate the new beneficiary name lookup facility into their existing systems (Internet banking, Mobile banking, branch operations). They are responsible for data privacy compliance, maintaining logs, and dispute resolution.
* Action Required: Develop and deploy the facility, ensuring it is available to customers by April 1, 2025; adhere to data privacy regulations; establish logging and dispute resolution mechanisms.
* **Customers (Remitters using RTGS and NEFT):**
* Impact: Customers gain the ability to verify beneficiary account names before transferring funds, reducing the risk of errors and fraud.
* Action Required: Utilize the new facility to verify beneficiary details before initiating transactions.
Key Entities Referenced
Real Time Gross Settlement (RTGS): A system for real-time fund transfers between banks.
National Electronic Funds Transfer (NEFT): A system for electronic fund transfers between banks.
Unified Payments Interface (UPI): An instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions.
Immediate Payments Service (IMPS): An instant real-time payment service for transferring funds instantaneously.
National Payments Corporation of India (NPCI): An organization that operates retail payments and settlement systems in India.
Payment and Settlement Systems Act, 2007: The Indian legislation governing payment and settlement systems.
April 1, 2025: The deadline for banks to offer the beneficiary account name lookup facility.
Mumbai, Maharashtra: City in India, location of Central Office Building of Department of Payment and Settlement Systems.
RBI/2024-25/99
CO.DPSS.RPPD.No.S987/04.03.001/2024-25 December 30, 2024
The Chairman / Managing Director / Chief Executive Officer of
Banks participating in RTGS and NEFT systems
Dear Sir / Madam,
Introduction of beneficiary bank account name look-up facility for Real Time
Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT)
Systems
Please refer to Statement on Developmental and Regulatory Policies dated October
9, 2024, proposing the introduction of beneficiary account name look-up facility for
Real Time Gross Settlement (RTGS) System and National Electronic Funds Transfer
(NEFT) System.
2. Currently, the Unified Payments Interface (UPI) and Immediate Payments
Service (IMPS) systems enable a remitter to verify the name of the beneficiary before
initiating transfer. It has been decided to put in place a similar facility that would enable
a remitter to verify the beneficiary bank account name before initiating a transaction
using RTGS or NEFT system. Accordingly, National Payments Corporation of India
(NPCI) has been advised to develop the facility and onboard all banks.
3. 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.
Detailed requirements for the same are provided in the Annex.
4. All banks who are direct members or sub members of RTGS and NEFT are
advised to offer this facility no later than April 1, 2025.
भुगतान और िनपटान प्रणाली िवभाग, केंद्रीय कायार्लय, 14वी मंिजल, केंद्रीय कायार्लय भवन,शहीद भगत िसंह मागर्, फोटर्, मु�ई - 400001
फोन Tel: (91-22) 2260 1000; फैक्स Fax: (91-22) 2265 9566; ई मेल-e-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai - 400001
िहंदी आसान है, इसका प्रयोग बढ़ाइए5. This directive is issued under Section 10 (2) read with Section 18 of Payment
and Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(Sudhanshu Prasad)
Chief General Manager
2Annex
(CO.DPSS.RPPD.No.S987/04.03.001/2024-25 dated December 30, 2024)
Introduction of beneficiary bank account name look-up facility for Real Time
Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT)
Systems
1. 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).
2. 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.
3. To ensure uniform experience for customers, the banks shall adhere to the
instructions given below:
i. 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.
ii. Provision to re-verify a registered beneficiary at any time shall also be
provided.
iii. Beneficiary account name provided by the beneficiary bank shall be
displayed to the remitter.
iv. In case the beneficiary name cannot be displayed for any reason, the
remitter can proceed with the fund transfer, at her discretion.
v. Specific alert messages as provided in the technical document, issued
earlier by NPCI, shall be displayed to the remitter.
34. Both remitting and beneficiary banks shall preserve detailed logs of all queries
made, responses received and all other activities as part of beneficiary bank
account name lookup facility.
5. NPCI shall not store any data relating to this facility. In case of a dispute, the
remitting bank and the beneficiary bank shall resolve the dispute based on the
unique lookup reference number and the corresponding logs.
6. While providing the facility, banks shall ensure to comply with legal provisions
related to data privacy, if any.
7. Beneficiary account name lookup facility shall be made available to customers
without any charge.
8. All banks who are direct members or sub members of RTGS and NEFT are
advised to offer this facility no later than April 1, 2025.
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