RBI Introduces Name Check for NEFT and RTGS Transfers

The Reserve Bank of India (RBI) has launched a new feature to help people check the recipient’s name before sending money through NEFT (National Electronic Funds Transfer) or RTGS (Real-Time Gross Settlement). This aims to reduce mistakes and increase security in digital payments.

Why This Is Important

Right now, when you send money through NEFT or RTGS, there's a chance you might enter the wrong details and send money to the wrong person. This new feature helps avoid that by letting you confirm the recipient's name before you complete the transaction.

How It Work?

When you enter the recipient’s account number and IFSC code, the system will show you the account holder’s name. This allows you to double-check that you are sending money to the right person before finishing the transfer.

RBI Governor's Announcement

RBI Governor Shaktikanta Das announced this feature during the Monetary Policy Committee meeting on October 9, 2024. He said that this feature is similar to what is already available with UPI and IMPS transfers, and now it will also apply to NEFT and RTGS systems.

Making Transactions Safer

This feature will help make digital transactions more secure by reducing errors and preventing fraudulent transfers. People will feel safer knowing they’re sending money to the right person.

As digital payments continue to grow, this new name verification feature for NEFT and RTGS transfers is an important step in making electronic transfers safer and more reliable for everyone.