There has been tremendous growth in the NEFT transactions in the last couple of years. There is always a month-on-month growth of NEFT transactions, with new Banks and new Players getting attracted to it.
As the transactions have grown, so is the % of complaints. One of the main complaint is that the beneficiary not getting the funds in time. The major reasons for the delay can be attributed to a) Invalid account number b) Incorrect IFS Code.
Ideally, in a CBS environment, the Account Number should be sufficient for NEFT Credit, and IFSC should be criteria for routing transactions to the correct number. But, this seems not to be the norm.
It has been observed that the logic employed in most of the banks, is that in case of Invalid Account numbers, the transaction is not being returned, but is credited to an internal bank account based on the beneficiary IFSC mentioned in the NEFT transactions. And, from there it goes into an infinite loop. The sender does not receive the credit back nor does the correct beneficiary receive the credit.
One method to minimize such transactions with incorrect account numbers is to launch a massive customer campaign. Other way is to put in additional manual controls at bank branch level.
Hence, RBI vide Cir No RBI/2012-13/244-DPSS (CO) EPPD No. 622/04.03.01/2012-13 dt.October 12, 2012, advised Banks Staff to
a) Guide customers in filling the NEFT remittance correctly and completely.
b) To ensure that the Branch Details and IFSC belong to each other only.
c) In case of any mismatch, Bank Staff to point out the error to the customers and ensure that the necessary corrections are made in the remittance form.
d) The maker-checker / double scrutiny procedure being followed by the banks should cover details provided by the customer in the NEFT application form, including matching of IFSC number.
It is expected that a detailed scrutiny of the NEFT remittance form, will reduce the issues relating to a) wrong credit b) delayed credit
Re-disseminated by Prashant N. Banker by daytime, Blogger by night.
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