NEFT: Mandatory IFSC and Customer Assistance Rules

RBI/2012-13/244 DPSS (CO) EPPD No. 622/04.03.01/2012-13 October 12, 2012 The Chairman and Managing Director / Chief Executive Officer of member banks participating in NEFT Madam / Dear Sir, National Electronic Funds Transfer (NEFT) – Requirement of Indian Financial System Code (IFSC) in transactions NEFT system provides for an efficient, affordable, safe mode of funds transfer in near real time. The growth in volume and value of transactions processed under the NEFT in recent times reflects its popularity as newer segments of population have also started using the system for meeting their remittance requirements. 2. One of the elements in the NEFT transaction relates to the IFS Code number of the beneficiary branch, which is a mandatory field for ensuring that transactions are routed to the correct beneficiary branch. The model NEFT application form, i.e. Form NEFT-2A in Annex III to the NEFT Procedural Guidelines dated April 2011 also provides for capturing the beneficiary bank details along with branch and the IFSC Number. 3. With a view to further facilitating electronic modes of remittance and enhancing customer service at branches for NEFT transactions, the participating banks are advised as under: (i) Bank staff should provide customers with necessary assistance in filling out the details as required in the NEFT application form, including ensuring that beneficiary account details etc. are duly filled in. (ii) Where the customer has provided both the IFS Code as well as branch details of the beneficiary branch, the bank should ensure that these details match. In case of any mismatch, the same may be brought to the notice of the customer for rectification before originating the transaction. (iii) Where the customer is able to provide only one of the inputs related to beneficiary branch, i.e., either the IFS Code or the branch name, then the bank staff has to assist the customer in ascertaining the other information which should be duly filled in by the customer on the NEFT application form before originating the transaction. (iv) The maker-checker / double scrutiny procedure being followed by the banks should cover details provided by the customer in the NEFT application form, including matching of IFSC number as above. (v) Banks may please ensure that these instructions for facilitating hassle and error free NEFT transactions are communicated to the branches and their dealing staff for compliance. Please acknowledge receipt and ensure compliance. Yours faithfully (Vijay Chugh) Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/244 · issued 12 Oct 2012. The plain-English explanation above is BankPulse’s own independent summary.

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