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The Reserve Bank of India (RBI) announced on Monday the launch of a new beneficiary bank account name verification feature for both the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems.
This facility will allow remitters to verify the beneficiary's name before initiating a transaction, reducing the risk of errors and fraudulent transfers.
Currently, systems such as Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) allow senders to verify recipient details before completing payments. With the introduction of this new feature, the RTGS and NEFT platforms will adopt similar functionalities, ensuring that the beneficiary’s account details match the name provided by the sender.
The National Payments Corporation of India (NPCI) has been tasked with developing and implementing the verification system, which will soon be available across all participating banks.
The new facility will be accessible through internet and mobile banking, and customers initiating transactions at bank branches will also be able to verify beneficiary details before processing payments.
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