What changed
RBI issued a circular advising all Primary Urban Co-operative Banks to adopt systems and procedures for processing inward electronic payment transactions based solely on the account number, without needing branch details, as per the enclosed DPSS circular.
What it means for you
Banks must upgrade their CBS and payment processing systems to ensure inward transactions are routed correctly using only the account number. This reduces errors and delays from incorrect branch codes, but requires robust account number validation and mapping infrastructure.
What you must do
- Review and update CBS to support unique account number-based routing for all electronic payment products.
- Implement system checks to validate account numbers against beneficiary details before crediting.
- Train operations staff on processing inward transactions using only account number information.
- Ensure compliance with the enclosed DPSS circular.
Who it affects
Primary (Urban) Co-operative Banks, IT and CBS teams, Payment operations departments
Does this circular apply to all electronic payment products?
Yes, it covers RTGS, NEFT, NECS, and ECS variants, as these rely on technology for processing and settlement.
What if a customer's account number is not unique across branches?
The circular assumes a CBS environment where account numbers are unique; banks without such systems must upgrade to comply.