Delhi High Court Pushes RBI for Swift Action on Beneficiary Name Verification

The Delhi High Court has directed the Reserve Bank of India (RBI) to swiftly implement a system to verify the receiver's name in RTGS and NEFT payment methods. This move aims to curb cyber fraud and protect consumers. The system, under testing, is crucial for enhancing transaction security.

In a landmark decision, the Delhi High Court has urged the Reserve Bank of India (RBI) to promptly establish a verification system for the receiver's name in RTGS and NEFT payment methods. Justice Pratibha M Singh underscored the necessity of this system to safeguard against cyber fraud, warning that delays could affect thousands of unsuspecting consumers.

The High Court mandated that all banks adopt this system. The ruling emerged amid multiple cases involving trademark misuse by fraudulent websites, exploiting innocent individuals. Highlighting the importance, the court emphasized that the RBI must address the Beneficiary's Name Lookup Facility without procrastination.

The implementation of this verification system was deemed imperative by the RBI, particularly as similar measures exist for UPI and IMPS transactions. While the facility is in the testing phase for NEFT and RTGS, the Court stressed an urgent need for its activation to enhance consumer protection and transaction security.

(With inputs from agencies.)