Question

What is the main benefit of the name look-up facility, introduced by the Reserve Bank of India for RTGS and NEFT systems?

• A. Free transactions for all users
• B. Introduction of new banking apps
• C. Verification of the beneficiary's name to reduce errors and fraud
• D. Faster transaction processing

Answer 1

Answer:

C. Verification of the beneficiary's name to reduce errors and fraud

The main benefit of the name look-up facility introduced by the Reserve Bank of India for RTGS and NEFT systems is the verification of the beneficiary's name to reduce errors and fraud. The RBI is launching a beneficiary account name look-up feature for RTGS and NEFT systems to prevent incorrect fund transfers. This will allow users to verify beneficiary names before completing transactions, aiming to enhance security in digital payments.