RBI mandates UPI-like name check facility for RTGS, NEFT by April 2025

The Reserve Bank of India (RBI) on Monday announced the introduction of a beneficiary bank account name look-up facility for Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. The beneficiary name look-up facility, similar to what we already use in UPI and IMPS, is designed to reduce errors and prevent fraud.

“Currently, the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) systems enable a remitter to verify the name of the beneficiary before initiating transfer. It has been decided to put in place a similar facility that would enable a remitter to verify the beneficiary bank account name before initiating a transaction using RTGS or NEFT system,” the RBI said in a notification.

It has advised the National Payments Corporation of India (NPCI) to develop the facility and onboard all banks.

Customers will be able to use it at the time of beneficiary registration, for one-time fund transfers, or for re-verifying registered beneficiaries.

• When you enter the account number and IFSC of the recipient, the system will fetch and display the account holder’s name.

• You’ll be able to confirm if it’s correct before completing the transaction.

• The feature will be available through internet banking, mobile apps, and even at bank branches for in-person transactions.

• What if the name doesn’t show up? You’ll still have the option to proceed, but it’s an extra layer of assurance for those double-checking their details.

The RBI also made it clear that this facility will be free for customers and that banks must comply with data privacy laws while implementing it. Both remitter and recipient banks will maintain logs for transparency and dispute resolution, ensuring smooth operations.

The rules were notified weeks after the central bank proposed the measure in its October 9 statement on developmental and regulatory policies.

The RBI has set a deadline of April 1, 2025, for all banks participating in these systems to roll it out.