Reserve Bank of India has announced a new facility for RTGS and NEFT payments. Now remitters will be able to verify the name of the beneficiary before payment. This will reduce the chances of wrong credit and fraud. This facility is similar to UPI and IMPS. Guidelines will be issued separately.
New Payments Rules: The Reserve Bank of India (RBI) has announced major changes in payment systems like RTGS and NEFT. Now before sending money, you will be able to check whether you are sending money to the right person or not. This facility is already available in UPI and IMPS. RBI Governor Shaktikanta Das told after the meeting of the Monetary Policy Committee (MPC) that this decision has been taken to protect customers and prevent fraud. He said that ‘Beneficiary Account Name Look-up Facility’ is being introduced in RTGS and NEFT.
How will the facility work?
Through this facility, the person sending the money will be able to confirm in whose name the account is by entering the account number and IFSC code. Shaktikanta Das said, ‘Accordingly, it is now proposed to introduce ‘Beneficiary Account Name Look-up Facility’ to enable the sender of money in RTGS and NEFT to verify the name of the beneficiary account holder before initiating the transfer.’
There will be less chance of fraud
Das further said that this facility will increase the confidence of customers and reduce the chances of wrong transfer and fraud. He said, ‘The person sending the money can enter the account number and branch IFSC code of the beneficiary. After this the name of the beneficiary will appear. This facility will increase the confidence of customers as it will reduce the chances of wrong credit and fraud.’
Detailed guidelines will be issued soon in this regard. The central bank on Wednesday maintained its key interest rate repo unchanged. But, by changing its relatively aggressive stance to ‘neutral’, it has taken the first step towards reducing the interest rate.
