Home › Circulars › RBI/2011-12/341

NEFT Positive Confirmation: RBI Cracks Down on Non-Compliance

Current · Source: Reserve Bank of India · RBI/2011-12/341 · issued 05 Jan 2012 · ~2 min read
Quick answerRBI has warned NEFT banks to ensure positive confirmation messages (N-10) are sent to remitters for every inward credit. Many banks send confirmations for under 10% of messages. Banks must report status and action plans within 15 days or face serious action.
The rule, in the simplest words
How it plays out — a real example

Rajesh, the NEFT operations head at a mid-sized bank, noticed his bank's positive confirmation rate was only 8%. After reading this RBI circular, he immediately formed a team to fix the message routing, ensuring every inward credit triggers an automatic N-10 message. He also prepared the action plan and submitted it to RBI within the 15-day deadline, avoiding potential penalties.

What changed

RBI reiterated that all NEFT participating banks must send positive confirmation to the originator once beneficiary account is credited, and no later than end-of-day. Banks failing to do so are now under scrutiny, with a directive to report current processes and submit action plans within 15 days.

What it means for you

Banks must fix their NEFT messaging systems to ensure every inward message gets a confirmation back to the originator. This will improve customer trust in NEFT but requires system upgrades and monitoring. Non-compliance could lead to regulatory action under the Payment and Settlement Systems Act.

What you must do

Who it affects

All NEFT participating banks, Beneficiary banks (receiving inward messages), Originator banks (sending outward messages), NEFT customers (remitters and beneficiaries)

❓ Common questions

What is a positive confirmation in NEFT?

It is a message (N-10) sent by the beneficiary bank to the originator bank confirming that funds have been credited to the beneficiary's account. The originator bank then informs the remitter.

Why is RBI concerned about this?

Because many banks are not sending these confirmations, with some sending them for less than 10% of inward messages. This undermines customer service and the unique feature of NEFT.

What is the deadline for banks to respond?

Banks must send a copy of their action plan to RBI within 15 days of receiving the circular.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 628 kb ) Providing Positive Confirmation to the Originator – Non-adherence to RBI Instructions RBI/2011-12/341 DPSS (CO) EPPD No.1199/04.03.01/2011-12 January 05, 2012 The Chairman and Managing Director / Chief Executive Officer of member banks participating in NEFT / Indian Banks’ Association Madam / Dear Sir, Providing Positive Confirmation to the Originator – Non-adherence to RBI Instructions Please refer to our circular DPSS CO EPPD No. 168 / 04.03.01 / 2009-2010 dated February 5, 2010 putting in place a mechanism which would enable NEFT participating banks to provide a positive confirmation to the remittance originator confirming the successful credit of funds to the beneficiary’s account. This modification was implemented in NEFT with effect from March 01, 2010 and banks were advised to confirm completion of necessary arrangements to ensure its implementation. 2. However, even though banks have had sufficient time for making necessary changes in their systems, it is observed that not all banks are sending such confirmations. In most cases, the bank that originated the remittance is unable to provide the confirmation to the originator / sending customer since they do not receive the corresponding confirmation message (N-10 message) from the beneficiary bank. Recent analysis shows that in respect of a large number of banks, the percentage of positive confirmation sent vis-a-vis inward messages received is lower than 10%. As you will appreciate, positive confirmation is a unique feature of NEFT and has played a major role in popularizing the system amongst the users. Non-adherence to instructions in this regard will undermine the customer service efficiency of the system. 3. It is once again reiterated that all banks should put in place systems to ensure positive confirmation is sent to the originator in accordance with our above mentioned circular. While it is expected that such confirmation messages are sent as soon as the beneficiary account is credited, it should not exceed beyond end-of-the-day under any circumstance. 4. Banks are advised to immediately report to us the existing status/process being followed by them for sending such messages, both as originator and receiver. Banks are advised to put in place suitable mechanisms immediately by which such confirmation will be sent for all inward / outward messages, if such systems are not already in place. A copy of your plan of action in this regard may please be sent to us within 15 days of receipt of this letter. The performance of banks in this regard will be monitored regularly and any deviation will be viewed seriously. These directions are issued by Reserve Bank of India, in exercise of the powers conferred by section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Please acknowledge and advise compliance. Yours faithfully (Vijay Chugh) Chief General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/341 · issued 05 Jan 2012. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Implement or upgrade systems to automatically send N-10 confirmation messages for every inward credit, ideally in real-time and no later than end-of-day.
📜 Compliance
  • Audit your NEFT inward and outward message flows to identify gaps in sending positive confirmations.
  • Submit a status report and action plan to RBI within 15 days of receiving the circular.
  • Set up internal monitoring to track the percentage of confirmations sent versus inward messages received.
  • Ensure your bank's performance is regularly reviewed to avoid serious regulatory consequences.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All NEFT participating banks, Beneficiary banks (receiving inward messages), Originator banks (sending outward messages), NEFT customers (remitters and beneficiaries)), your first concrete step on “NEFT Positive Confirmation: RBI Cracks Down on Non-Compliance” is: “Audit your NEFT inward and outward message flows to identify gaps in sending positive confirmations.” (RBI issued this 05 Jan 2012).

  1. Circular: RBI/2011-12/341 -- NEFT Positive Confirmation: RBI Cracks Down on Non-Compliance
  2. Issued: 05 Jan 2012
  3. Action required: Audit your NEFT inward and outward message flows to identify gaps in sending positive confirmations.
  4. Action required: Implement or upgrade systems to automatically send N-10 confirmation messages for every inward credit, ideally in real-time and no later than end-of-day.
  5. Action required: Submit a status report and action plan to RBI within 15 days of receiving the circular.
  6. Action required: Set up internal monitoring to track the percentage of confirmations sent versus inward messages received.
  7. Action required: Ensure your bank's performance is regularly reviewed to avoid serious regulatory consequences.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6926&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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