Now, UPI-Like 'Verified' Name Will Display In NEFT, RTGS Money Transfers - See RBI Report

Imagine transferring money and wondering if you've entered the correct bank account details. A typo could mean your hard-earned money is sent to the wrong person! But here’s some good news from the RBI. Starting April 1, 2025, you’ll get to verify the account holder’s name before making a transfer using RTGS or NEFT.

Until now, RTGS and NEFT systems relied solely on account numbers and IFSC code, leaving room for mistakes. A similar feature already exists for UPI and IMPS, where you can see the receiver’s name before transferring money. The RBI is now extending this safeguard to RTGS and NEFT.

How will It work?

• When you enter the account number and IFSC code, the system will fetch and display the beneficiary’s name directly from the bank.
• This feature will also be available while registering a new beneficiary in your Internet or mobile banking.
• Even if you visit your bank branch, the staff can help verify the account holder's name before processing the transfer.

What happens if the name doesn’t match?*

If the system fails to fetch the name for any reason, you can still proceed with the transfer, but at your own discretion. Banks will display clear alerts to guide you during such situations.

Is there a fee for this?

This service will be completely free for all customers, ensuring a secure transaction experience without extra charges.

The RBI has assured that this facility will comply with data privacy laws. Banks will keep detailed logs of all name-check queries and responses to resolve any disputes efficiently. NPCI, which manages the backend system, won’t store any data related to this process.

The RBI’s decision comes as part of its October 2024 announcement to strengthen digital banking systems.