The Reserve Bank of India (RBI) on Wednesday proposed to introduce a ‘beneficiary account name look-up facility’ for Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) systems.
Governor Shaktikanta Das said the move would prevent the wrong credits and fraud, in case of the payments made through RTGS and NEFT.
He pointed out that under this facility, the remitters in RTGS and NEFT will be able to verify the name of the beneficiary account holder before initiating funds transfer.
Das highlighted that payment systems like UPI and IMPS provide a facility to the remitter to verify the name of the receiver (beneficiary) before initiating a payment transaction.
There have been requests to introduce such a facility for Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) systems, he added.
Under this facility, remitters can input the account number and the branch IFSC code of the beneficiary, following which the name of the beneficiary will be displayed.
Governor Das said this facility will increase customer confidence as it would reduce the possibility of wrong credits and frauds.
The RBI Governor has also announced enhancement of limits on UPI. He said that for the UPI123Pay, the per-transaction limit has been increased to Rs 10,000 from earlier Rs 5,000.
UPI Lite wallet limit has been increased to Rs 5,000 from Rs 2,000, and per-transaction limit to Rs 1,000 from Rs 500.
UPI 123 Pay was launched in March 2022, with a view to enable feature-phone users to use UPI. This facility is now available in 12 languages. Currently, the per-transaction limit in UPI 123 Pay is capped at Rs 5,000.
UPI Lite Wallet, on the other hand, facilitates small-value transactions without requiring PIN authentication, providing a swift and seamless payment experience.