Beneficiary account name lookup service for RTGS and NEFT transactions coming soon; how you will reduce incorrect money transfers

The Reserve Bank of India (driven) has proposed a new feature that would allow RTGS and OIL Senders must verify the recipient’s name before executing the payment, similar to the feature available in UPI and IMPS transfers. This initiative aims to reduce cases of errors fund transfers.

The announcement was made by the RBI Governor, Shaktikanta Dasduring the Monetary Policy Committee meeting on October 9, 2024.

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“Introduction of Beneficiary Account Name Lookup Feature: Payment systems like UPI and IMPS provide the sender with the facility to verify the name of the recipient (beneficiary) before initiating a payment transaction. There have been requests to introduce such a facility for the Real Time Gross Settlement System (RTGS) and National Electronic Fund Transfer (NEFT) systems. Accordingly, to enable senders on RTGS and NEFT to verify the name of the beneficiary account holder before initiating the transfer of funds, it is now proposed to introduce a “beneficiary account name lookup service”.

Senders can enter the account number and IFSC code of the beneficiary’s branch, after which the name of the beneficiary will be displayed. This facility will increase customer confidence as it would reduce the possibility of incorrect credit and fraud. Detailed guidelines will be published separately,” states the Regulatory and Development Policy Statement published on October 9, 2024.

UPI and IMPS have the facility for the sender of funds to verify the name of the recipient before executing the payment. The same is now proposed to be applied in RTGS and NEFT systems so that the sender can verify the name of the beneficiary.

What is IMPS?

The Immediate Payment Service is a new facility added to the Mobile Banking Service. It facilitates the transfer of funds to a beneficiary’s account at a participating bank, based on the beneficiary’s mobile number and MMID or account number and IFSC.

How to send money using IMPS (Immediate Payment Service)

Step 1 – Sign in to your bank app or mobile banking account
Step 2 – Select IMPS or Funds Transfer
Step 3: Choose to send money using the beneficiary’s mobile number and MMID, or their account number and IFSC code
Step 5: Enter the beneficiary details, including their mobile phone number or account number, the amount you want to send, and their MPIN.
Step 6: Review the transaction details and confirm the transfer.

How to send money via RTGS

To make an RTGS/NEFT remittance, the sender must provide the following information:

• Amount to be sent.
• Account number of the sending customer to be debited
• Beneficiary name.
• Beneficiary account number.
• Purpose of the remittance
• IFSC code of the destination bank branch

Login: Log in to your bank’s net banking account or mobile app.
Step 1 – Under Funds Transfer, select RTGS
Step 2: Add beneficiary:
Step 3: Enter the amount to transfer
Step 4: Review the details and confirm the transaction.
Step 5: Authenticate the transaction using an OTP and click Submit.