What changed
RBI directed banks to help customers fill NEFT forms, verify IFSC and branch details match, and assist when only one input is provided. Maker-checker procedures must now cover these details to ensure accuracy.
What it means for you
Banks must enhance customer service by actively verifying beneficiary branch details, reducing transaction errors. This increases operational workload but improves NEFT reliability and customer trust. Non-compliance could lead to regulatory scrutiny.
What you must do
- Train branch staff to assist customers with NEFT form details, including IFSC and branch name.
- Implement verification checks to ensure IFSC and branch details match before processing.
- Update maker-checker procedures to include IFSC and branch detail verification.
- Communicate these instructions to all branches and dealing staff for compliance.
Who it affects
NEFT-participating banks, Branch staff handling NEFT transactions, Customers using NEFT for remittances
What is the IFSC code requirement for NEFT?
The IFSC code of the beneficiary branch is mandatory for routing NEFT transactions correctly. Banks must ensure customers provide it or assist in obtaining it.
What should banks do if a customer provides only the IFSC code or branch name?
Bank staff must help the customer find the missing information (IFSC or branch name) and ensure it is filled in the form before processing the transaction.
How does the maker-checker procedure apply here?
Banks must extend their existing maker-checker or double scrutiny process to cover the verification of IFSC and branch details provided by the customer.