RBI asks NPCI for the Beneficiary Account Name Look-up facility

Context:

RBI asks NPCI to build an infrastructure for online fund transfer systems.

Key Highlights:

• The facility should enable customers to verify the name of the bank account before initiating a transaction.
• Direct member or sub-members of RTGS and NEFT Systems are guided to provide by April 1, 2025.

RTGS or Real-Time Gross Settlement

RTGS or Real-Time Gross Settlement is another electronic mode of payment that enables funds transfer from one bank account to another. In contrast to NEFT, RTGS settles transactions on a one-to-one basis immediately after the instruction is received. 

National Electronic Funds Transfer

NEFT or National Electronic Funds Transfer is an electronic payment system regulated by the Reserve Bank of India (RBI) that allows funds to be transferred between bank accounts across the country, following RBI guidelines.

National Payments Corporation of Indi