RBI Introduces Name Lookup Facility for RTGS and NEFT to Enhance Security
| Key Point | Details |
|---|---|
| Why in News | RBI proposed a name lookup facility for NEFT and RTGS to verify beneficiary names. |
| Deadline for Implementation | April 1, 2025 |
| Development Agency | National Payments Corporation of India (NPCI) |
| Access Modes | Internet banking, mobile banking, and in-person transactions at bank branches |
| Feature Cost | Free for customers |
| Core Functionality | Verifies beneficiary name using account number and IFSC via the receiving bank's CBS |
| Current Similar Systems | UPI and IMPS, which already offer beneficiary name verification before transactions |
| Data Storage Rules | Banks to store lookup queries; NPCI prohibited from storing query-related data |
| Objective | Enhance transaction accuracy, reduce fraud, and ensure secure fund transfers |
| Operational Framework | Uses account numbers and IFSC codes to fetch beneficiary's name from the receiving bank's system |