RBI to Launch Beneficiary Name Verification for RTGS and NEFT by April 2025

The Reserve Bank of India (RBI) announced a new feature on Monday aimed at enhancing security and reducing errors in digital transactions. By April 1, 2025, a beneficiary bank account name look-up facility will be introduced for both the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems.

This new feature will allow users to verify the name of the beneficiary before initiating transactions, helping to prevent errors and fraud. Currently, similar functionalities exist in the Unified Payments Interface (UPI) and Immediate Payments Service (IMPS) systems.

How the New System Works

According to the RBI’s official circular, the name verification feature will ensure that the beneficiary’s name matches the account details provided by the sender. This will add an extra layer of security and accuracy to digital payments.

The National Payments Corporation of India (NPCI) has been tasked with developing and implementing the system. Once ready, it will be rolled out across all banks participating in the RTGS and NEFT networks.

Availability and Accessibility

The new feature will be accessible through multiple channels:

Internet Banking and Mobile Banking: Customers using online platforms will see the verification option integrated into their transaction process.

Bank Branches: For those initiating transactions at physical branches, bank staff will assist in verifying the beneficiary details before processing payments.

Benefits of the Facility

The introduction of this system is expected to bring several advantages:

Error Reduction: Users can confirm the recipient’s account name before making payments, reducing the chances of mistakes caused by incorrect account details.

Fraud Prevention: Real-time name verification will minimize the risk of fraudulent transactions or misdirected funds.

Enhanced Trust: Similar to UPI and IMPS, this feature will provide an added sense of security for users, encouraging wider adoption of digital payment systems.

Context and Court Intervention

The announcement follows a directive from the Delhi High Court earlier on Monday, urging the RBI to implement a name verification system for RTGS and NEFT transactions without delay. Justice Pratibha M. Singh highlighted the importance of such a system in preventing cyber frauds, warning that delays could lead to financial losses for consumers unknowingly transferring money to fraudulent accounts.

The court’s directive came during the hearing of a case involving fraudulent websites misusing trademarks to deceive customers. The court mandated that the system be implemented across all banks to safeguard consumers.

RBI’s Vision for Digital Payments

This initiative aligns with the RBI’s broader goal of strengthening the digital payment ecosystem in India. As more people rely on online banking, such measures are expected to build trust and encourage greater adoption of secure and efficient payment methods.

By April 2025, the beneficiary name look-up facility will become a key feature of RTGS and NEFT transactions, further solidifying India’s position as a leader in digital payment innovation

Read More

DFS taken high-level review meeting with MD&CEO of Public Sector Banks

Top representatives from Public Sector Banks (PSBs), Private Sector Banks, and senior executives from important financial institutions attended a high-level review meeting today, which was led by Shri M. Nagaraju, Secretary of the Department of Financial Services (DFS) within the Ministry of Finance.

Read More- Latest Updates about 5 Days Banking

Senior executives from SIDBI, Mudra Ltd., the Indian Banks' Association (IBA), and the National Credit Guarantee Trustee Company (NCGTC) participated virtually in the conference, which took place in New Delhi. Shri Nagaraju evaluated the state of several government-led financial inclusion programs at the conference. These comprised:

* Pradhan Mantri Jan Dhan Yojana (PMJDY): A flagship scheme for universal banking access.

* Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Life insurance for the underprivileged.

* Pradhan Mantri Suraksha Bima Yojana (PMSBY): Accidental insurance coverage.

* Atal Pension Yojana (APY): A pension scheme aimed at unorganized workers.

* Pradhan Mantri Mudra Yojana (PMMY): Financial support for micro and small enterprises.

* Stand Up India Scheme: Focused on empowering SC/ST entrepreneurs and women.

* PM Vishwakarma Scheme: Promoting traditional artisans and craftspeople.

Expanding Banking Infrastructure

The Secretary also reviewed the establishment of new brick-and-mortar bank branches in unbanked villages. He highlighted the importance of expanding banking services, particularly in remote and underserved areas, with a special focus on the North Eastern states. Shri Nagaraju urged banks to address challenges related to connectivity and infrastructure to ensure that banking services reach even the most isolated communities.

Strengthening Financial Inclusion

Shri Nagaraju commended the significant progress made under the government’s flagship schemes in expanding social security and promoting financial inclusion. However, he called on banks to intensify their efforts to bring more people under the umbrella of financial services.

The Secretary emphasized the importance of achieving targets under the MUDRA scheme and increasing loan disbursements to Scheduled Castes (SCs) and Scheduled Tribes (STs) under the Stand-Up India Scheme.

Shri Nagaraju reiterated the government’s commitment to deepening financial inclusion and urged both public and private sector banks to work collectively towards achieving these goals. He stressed that these efforts are vital for strengthening India’s financial ecosystem and ensuring inclusive economic growth.

Read More

UCO Bank Local Bank Officer(LBO) Recruitment for 250 posts

Applications are being accepted for the positions of Local Bank Officer at UCO Bank. Candidates who meet the requirements can apply online at ucobank.com, the official UCO Bank website. 250 positions inside the company will be filled via this hiring campaign.



January 16 marks the start of the registration period, which ends on February 5, 2025. Details on eligibility, the selection procedure, and other information are provided below.

Eligibility Criteria

A Degree (graduation) in any discipline from a University recognised by the Govt. of India or any equivalent qualification recognized as such by the Central Government. The candidate must possess valid Mark-sheet / Degree Certificate and indicate the percentage of marks obtained in Graduation while registering for the position. The age limit of the candidate should be between 20 years to 30 years.

Selection Process

The selection process comprises of written test. The question paper will comprise of questions from Reasoning & Computer Aptitude, General/ Economy/ Banking Awareness, English Language and Data Analysis & Interpretation. For each question for which a wrong answer has been given by the candidate one fourth or 0.25 of the marks assigned to that question will be deducted as penalty to arrive at corrected score. If a question is left blank, i.e. no answer is marked by the candidate; there will be no penalty for that question.

Vacancy Details

• Gujarat: 57 posts
• Maharashtra: 70 posts
• Assam: 30 posts
• Karnataka: 35 posts
• Tripura: 13 posts
• Sikkim: 6 posts
• Nagaland: 5 posts
• Meghalaya: 4 posts
• Kerala: 15 posts
• Telangana & Andhra Pradesh: 10 posts
• J&K: 5 posts

Application Fee

The application fee or intimation charges is ₹175/- for SC/ST/PwBD candidates and ₹850/- for all others. Bank Transaction charges for Online Payment of application fees/ intimation charges will have to be borne by the candidate. Fee/ Intimation charges once paid will not be refunded on any account nor can it be held in reserve for any other exam or selection.

Detailed Notification Click Here 

Direct link to apply click here 

Read More

New MD & CEO appointed in Two Public Sector Banks

Two major public sector banks, Indian Bank and Punjab National Bank, have had their leadership changes authorized by the Appointments Committee of the Cabinet (ACC), the government said in two separate orders.Ashok Chandra, who is now Canara Bank's executive director, was named PNB's managing director and chief executive officer (MD & CEO) for a three-year term.

"The Appointments Committee of the Cabinet (ACC) has approved the proposal of the Department of Financial Services for appointment of Shri Ashok Chandra (DoB: 16.12.1968), Executive Director (ED), Canara Bank as Managing Director and Chief Executive Officer (MD&CEO), Punjab National Bank (PNB), for a period of three years w.e.f. the date of assumption of charge of the office, or until further orders, whichever is earlier," the order said.

Read More - Top 10 Government Banks in India 2024

The new MD and CEO of Indian Bank is Binod Kumar, the Executive Director of PNB.After a performance assessment, Kumar, who was hired for a three-year tenure, may be eligible for a two-year extension.

After the Reserve Bank of India (RBI) allegedly made disparaging statements about the top executive, the Financial Services Institution Bureau (FSIB) revoked its previous recommendation, which was followed by his hiring.

"Appointment of Shri Binod Kumar (DoB: 01.01.1971), Executive Director, Punjab National Bank as Managing Director and Chief Executive Officer, Indian Bank for a period of three years w.e.f. the date of his assumption of charge of the post, or until further orders, whichever is earlier," stated the order.

The reports that the FSIB recommended Asheesh Pandey, executive director of Bank of Maharashtra, for the top job at Indian Bank in April 2024. The banking regulator then wrote to the finance ministry, requesting that it take its observations into account when assessing Pandey's candidacy.

According to the RBI, Asheesh Pandey's "behavior and conduct" during a supervisory findings exit meeting was "found not befitting his position and responsibilities concerning regulatory compliance."

Read More

Axis Bank Q3 Net profit rises 4% YoY

On January 16, private lender Axis Bank said that its net profit for the third quarter of the current fiscal year 2024–2025 increased by 3.83 percent to Rs 6,304 crore. The lender's net profit decreased by 9% on a sequential basis. The net profit for the July–September quarter was Rs 6917.57 crore.

The third-largest private lender in India, Axis Bank, reported a 5.6 percent YoY increase in net profit for the third quarter of fiscal year 2024-25 (Q3FY25), powered by moderate loan growth, according to a Moneycontrol survey of six brokerages.

Read More - Top 10 Banks in India 2024

For the fiscal third quarter of 2025, Axis Bank generated interest income of Rs 30,954 crore, an 11% increase over the Rs 27,961 crore reported during the same period last year. In the quarter under review, the lender paid interest of Rs 17,348 crore, which was 12% more than the Rs 15,429 crore paid in the Oct-Dec quarter of the previous fiscal year.

At Rs 2,156 crore, the lender's provisions and contingencies—money set aside for possible bad loans—more than doubled annually.Due to an increase in bad loans in areas like microfinance and the unsecured portfolio, Indian lenders have been compelled to increase their reserves for possible losses.

Read More - Q3FY25 Results of Banks in India

At the end of December, Axis Bank's gross non-performing asset ratio, which is a crucial indicator of lenders' asset quality, was 1.46%, up from 1.44% three months prior.The difference between interest earned and paid, or net interest income, increased by 9% to Rs 13,606 crore.

In the three months ending December 31, Axis Bank's loan growth was 9% year over year, which was less than the 11% increase in the preceding quarter. Additionally, its total deposits increased by 9%.A crucial indicator of profitability, the net interest margin, decreased to 3.93% from 4.01% a year earlier and 3.99% in the prior quarter.

Read More

Bank Of Maharashtra Q3 Net profit jumps 36%

                                  

PSU lender Bank of Maharashtra's net profit increased significantly, while the quality of its assets remained steady. Net Interest Income (NII) or core income for the lender, climbed by 19% on a year-on-year basis to ₹2,944 crore.

 Additionally, the period's net profit rose 36% year over year to ₹1,406 crore. The state-run lender's asset quality did not change. Net NPA stayed at 0.2% from the September quarter, while Gross NPA increased from 1.84% to 1.8%. 

Read More - Q3FY25 Results of Banks in India

According to the Bank of Maharashtra's quarterly business update released earlier this month, deposits increased 13.5% year over year to ₹2.79 lakh crore. Nonetheless, the deposit growth was 1% on a sequential basis.

Read More -  Top 10 Government Banks in India 2024

Advances for the quarter reached ₹2.28 lakh crore, up 21.2% from the previous year. Additionally, the figure was 5.1% greater than the September quarter. 

CASA deposits rose 11.5% year over year to ₹1.37 lakh crore, while the CASA ratio was 49.28%, up from 49.29% in September and 50.19% in the same quarter previous year. The state-run lender's credit-deposit ratio was 81.95% in December, up from 78.72% in June and 76.78% the previous year.

Read More

Punjab and Sind Bank Q3 Net profit zooms 147%

 

On Wednesday, January 15, the state-owned Punjab & Sind Bank said that its net profit for the third quarter, which ended on December 31, 2024, increased 146.72% year over year (YoY) to ₹282 crore. According to a regulatory filing, Punjab & Sind Bank reported a net profit of ₹114.3 crore for the equivalent quarter of the previous fiscal year. 

The difference between a bank's interest income from lending and the interest it pays depositors is known as net interest income (NII), and it rose 27% to ₹938.7 crore from ₹739.2 crore in the same quarter of FY24.

Compared to 4.21% in the September quarter, gross non-performing assets (NPA) were 3.83% in the December quarter. Net NPA was 1.25% as opposed to 1.46% on a quarterly basis (QoQ). Against ₹150.6 crore sequentially and ₹96.3 crore (YoY), provisions were ₹109.3 crore. 

According to people with knowledge of the situation, the government authorized a ₹10,000 crore fundraising plan yesterday for five state-run lenders through a qualified institutional placement (QIP). 

According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

Read More

Fraud of Rs 196 crore Found in PSU Bank

In accordance with the Prevention of Money Laundering Act (PMLA), 2002, the Ahmedabad Zonal Office of the Directorate of Enforcement (ED) has temporarily attached real estate valued at Rs.15.01 crore (current market value of Rs.20 crore). Directors, partners, and family members of M/s Jyoti Power Corporation Pvt. Ltd. (JPCPL) own the properties.

Click here to read post related to Bank Fraud

After the Mumbai Economic Offenses Branch of the Central Bureau of Investigation (CBI) submitted a formal complaint (FIR), the ED started its investigation. The FIR, which was filed in accordance with the Prevention of Corruption Act and the Indian Penal Code (IPC), charged JPCPL and its directors, Kamlesh Kataria and Nitesh Kataria, with fraudulently defaulting on loans from the Bank of India (BOI). The bank lost Rs.196.82 crore as a result of the alleged fraud.

The ED claims that JPCPL obtained a number of credit facilities from BOI and a group of other banks. The company's directors' personal accounts and a number of other companies received these funds. Important conclusions include:

Money was misappropriated and transferred to non-consortium banks under the pretense of labor payments.Assets, both fixed and movable, were sold without the banks' consent.In order to hide the proceeds of the crime, properties bought with bank monies were given to family members without any payment.

To recoup a portion of the fraudulent sum, the ED has seized properties owned by the directors of the company and their families. Deliberate attempts to conceal the fraud's proceeds were exposed by the investigation, including the transfer of assets to businesses that had been detected.

The ED has claimed that further investigations into the issue are underway to find new details and take required action. This development underscores the agency’s commitment to reducing financial crimes and ensuring accountability for fraudulent acts.

Read More