RBI MPC Meeting: Many times, bank customers transfer money to the wrong account while transferring money online through RTGS and NEFT. But soon such mistakes made by bank customers will reduce and fraud will also be curbed. With the Real Time Gross Settlement System and National Electronic Funds Transfer by the Reserve Bank of India, before executing the transaction, the funds remitter i.e. the person transferring the money will be able to verify the name of the receiver i.e. the beneficiary account holder. RBI has decided to start the beneficiary account name look-up facility.
There is facility of beneficiary verification in UPI and IMPS.
At present, whenever money is transferred through UPI or Immediate Payment Service (IMPS), the remitter of funds, i.e. the person transferring the money, has the option to verify the identity of the receiver before making the payment transaction. Or verify the name of the beneficiary. But this facility was not available in RTGS (Real Time Gross Settlement System) or NEFT (National Electronic Funds Transfer) system.
Beneficiary verification will be possible in RTGS-NEFT
In his address after the Monetary Policy Committee meeting, Reserve Bank of India Governor Shaktikanta Das said, now it is proposed that Real Time Gross Settlement System and National Electronic Funds Transfer. Such a facility should be started to transfer funds through UPI and IMPS (Immediate Payment Service). RBI Governor said that, with the launch of this facility, remitters will be able to verify the name of the account holder before transferring funds through RTGS or NEFT. This will reduce the chances of crediting funds to the wrong account and will also prevent fraud.
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