What changed
RBI has directed all RTGS and NEFT participant banks to implement a beneficiary name look-up facility, allowing remitters to verify the account holder's name before initiating a transfer. This mirrors the existing UPI and IMPS verification feature. NPCI has been tasked with developing the facility and onboarding all banks.
What it means for you
Banks must integrate a name look-up API with their CBS to fetch and display beneficiary names based on account number and IFSC. This will reduce failed transactions and frauds but requires IT upgrades and compliance with data privacy laws. The facility must be free for customers, and banks must maintain detailed logs for dispute resolution.
What you must do
- Coordinate with NPCI to integrate the beneficiary name look-up facility into your CBS and digital channels.
- Update internet banking and mobile banking interfaces to show name verification at beneficiary registration, one-time transfers, and re-verification.
- Ensure branch staff can perform the look-up for walk-in remitters.
- Set up logging mechanisms for all look-up queries and responses, and define dispute resolution processes using unique reference numbers.
- Complete rollout by April 1, 2025, and confirm compliance with data privacy requirements.
Who it affects
All banks participating in RTGS and NEFT as direct members or sub-members, IT and digital banking teams, Branch operations staff, Customers using RTGS/NEFT for fund transfers
Will this facility be available for all types of RTGS/NEFT transactions?
Yes, the name look-up will be available for both registered and one-time beneficiaries through internet banking, mobile banking, and branch visits.
What happens if the beneficiary name cannot be displayed?
If the name cannot be fetched for any reason, the remitter can still proceed with the transfer at their own discretion, with appropriate alert messages displayed.
Is there any charge for using this facility?
No, RBI has mandated that the beneficiary account name look-up facility must be provided to customers free of charge.