New Delhi: In a significant ruling, the Delhi High Court has asked the Reserve Bank of India to expeditiously activate the process of verifying the receiver’s name in RTGS and NEFT payment methods
Justice Pratibha M Singh said such a system was crucial to prevent cyber frauds and a delay could likely impact thousands of innocent consumers who made payments without realising who the beneficiary was.
The system shall be implemented by all banks, it said.
The court was hearing a batch of pleas over the misuse of trademark of several entities by fraudulent websites to dupe innocent people.
“Steps being taken by the RBI for implementation of the said Beneficiary’s Name Lookup Facility for RTGS and NEFT transactions are extremely crucial to prevent cyber fraud like the kind of fraudulent activity that are being dealt with in this case. The RBI shall, without any delay, create the said facility referred to as, Beneficiary’s Name Lookup Facility,” said the court on December 21.
The court said a delay in its implementation was likely to impact thousands of innocent consumers.
“Let the RBI expeditiously activate the said system and inform the IBA (Indian Bank Association) and its member banks of the said facility, which could be implemented by the banks,” it said.
The RBI counsel said for UPI and IMPS methods, it was now possible for the remitter to verify the name of the receiver before initiation of payment transaction but such a system for verification of name of the receiver was yet to be implemented in RTGS and NEFT payment methods.
It was however stated the system, called Beneficiary’s Name Lookup Facility, was developed for NEFT and RTGS payment methods and was under testing and would be soon made available.
