The Reserve Bank of India (RBI) has taken a new initiative to make digital banking more secure and convenient. Now while transferring money through RTGS (Real-Time Gross Settlement) and NEFT (National Electronic Funds Transfer), the facility to verify the name of the account holder will be available. This move has brought relief to customers who accidentally transfer money to the wrong account.
What is the new Look-Up Facility?
- RBI has directed banks to implement this facility before April 1, 2025.
- Customers will now be able to verify the name of the account after entering the beneficiary account number and IFSC code while transferring funds.
- This facility will be available through internet and mobile banking as well as in bank branches.
Money will not be transferred to the wrong account
According to RBI:
- You will be able to verify the name of the remitter account holder.
- This process will reduce the possibility of money being sent to wrong accounts.
- This will also curb fraud and cheating.
- Banks will trace the name of the account holder through Core Banking Solution (CBS).
This facility is already present in UPI and IMPS
- This facility is already present in UPI (Unified Payments Interface) and IMPS (Immediate Payment Service).
- The addition of this facility to RTGS and NEFT will make the digital fund transfer process more secure.
RBI’s decision in October MPC meeting
- This proposal was approved by RBI in the Monetary Policy Committee (MPC) meeting on 9 October 2025.
- Former RBI Governor Shaktikanta Das said that this step has been taken to make RTGS and NEFT as secure as UPI and IMPS.
- With the advent of this feature:
- The possibility of money going to the wrong account will reduce.
- This will help in preventing digital fraud.
Benefits of RBI Look-Up Facility
- Less chances of wrong transfer:
The facility to verify the name of the account holder before transfer will help customers avoid mistakes. - Ban on fraud:
This feature will also reduce the chances of fraudulent transactions. - Trust in digital banking will increase:
Customers will get more security and convenience in digital transactions.
