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 be reduced and fraud will also be curbed.
The Reserve Bank of India has decided to start the Real Time Gross Settlement System and National Electronic Funds Transfer so that 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.
UPI and IMPS have the facility of beneficiary verification
Currently, whenever money is transferred through UPI or Immediate Payment Service (IMPS), the Remitter of Funds i.e. the one who is transferring the money has the option to verify the name of the receiver or beneficiary before making the payment transaction. But this facility was not available in RTGS (Real Time Gross Settlement System) or NEFT (National Electronic Funds Transfer) system.
Verification of beneficiary 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 to start a facility similar to UPI and IMPS (Immediate Payment Service) for transferring funds through Real Time Gross Settlement System and National Electronic Funds Transfer. The RBI Governor said that, after the introduction 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 curb fraud.
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