Account Details Responsibility in NEFT/RTGS

Posted In India - By NitiN Kumar Jain On Thursday, January 13th, 2011 With 4 Comments

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This is to inform everyone, in case you are unaware, that whenever you initiate any of the transactions like RTGS/NEFT/NECS/ECS, banks are no longer responsible (no validation before transfer) for the wrong information that you may provide them.

As per the new Reserve Bank of India guidelines which is already in effect from 1st January 2011, banks will solely rely on the account number details (name of the beneficiary’s bank and the branch, IFSC code number of the beneficiary’s branch, account type and account number) provided by the remitter for the purpose of affording credit in the RTGS/NEFT/NECS/ECS credit products.

Please note that Name and account number information of the beneficiary will not be matched for affording credit by the banks.

Responsibility to provide correct beneficiary account number details rests solely with the remitter that is you who is initiating the transaction. Hence customers are requested to furnish the correct account number details of beneficiary in the remittance instructions / challans and through the online / internet delivery channel.

Bank shall not be held liable for wrong credit because of incorrect account number details of beneficiary, furnished by the remitter in the application form/ challan or through the online / internet delivery channel for RTGS/ NEFT/ NECS/ ECS credit products.

These guidelines are equally applicable to ECS debit transactions to be used by destination branches for debiting their customers accounts based on account number details furnished by the user institutions / sponsor banks.

Gist is that you should double check the account details before initiating the RTGS / NEFT transactions. Banks will not be held information if the transfer is made to some other account that you may not intend to.