RBI Mandates Beneficiary Name Verification for RTGS and NEFT Transactions Starting April 2025
The Reserve Bank of India (RBI) has announced the implementation of a beneficiary name verification feature for Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems, effective April 1, 2025.
Key Details:
Beneficiary Name Verification: This feature will allow remitters to confirm the beneficiary’s account name before initiating RTGS or NEFT transactions, enhancing security and reducing errors.
Implementation Deadline: All banks participating in RTGS and NEFT are required to offer this facility by April 1, 2025.
Access Channels: The verification service will be available through internet banking, mobile banking, and at physical bank branches for in-person transactions.
Development Responsibility: The National Payments Corporation of India (NPCI) has been tasked with developing the necessary infrastructure and ensuring all banks are onboarded.
This initiative aims to enhance the security and reliability of digital fund transfers by allowing individuals to confirm the beneficiary’s account name before transferring funds.
Currently, such verification is available for payments made through the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS).
The RBI’s directive extends this feature to RTGS and NEFT transactions, providing users with an additional layer of security. For more detailed information, you can refer to the official RBI notification and recent news articles on this development.