Udaipur, October 12, 2024 - The Reserve Bank of India (RBI) recently announced major changes in payment systems like RTGS and NEFT. Now, before sending payments, users will be able to check whether they are sending money to the correct person or not.

The announcement was made by RBI governor, Shaktikanta Das, during the Monetary Policy Committee meeting on October 9, 2024.

The RBI has implemented this measure to boost the security of banking services and thwart fraud. RTGS and NEFT will soon feature a new Beneficiary Account Name Lookup Facility to foster confidence among banking customers and minimise the risk of erroneous transfers and fraud. Comprehensive instructions on this will be released shortly. UPI and IMPS already offer this functionality.

The new facility will allow the sender of the payment to verify the account holder's name by inputting the account number and IFSC code. This will permit the sender to confirm the name of the beneficiary account holder before initiating transfers in RTGS and NEFT.

The intention behind this act is to reduce the risk of cybercrime by enabling people to verify the recipient's identity twice, thus minimising the likelihood of mistakes or fraudulent transactions.