In all Net Banking modules for funds transfer, a pre-existing beneficiary is a must.
Funds transfer cannot be initiated with first adding a beneficiary.
Normally, the beneficiary has the Account holder name, Account holder bank account number, IFS Code (as most of domestic transfers are done through NEFT/RTGS/IMPS).
As a risk mitigation measure, some banks have a cooling period between addition of a beneficiary and funds transfer to the said beneficiary.
Different banks have different steps for addition of beneficiaries. OTP (One Time Password) is the most common additional security factor employed by most of the banks.
Another risk mitigation feature is the restriction in the number of beneficiary additions in a day.
In the interest of bank customers, an additional risk mitigation feature i.e Automatic deactivation of beneficiaries should be introduced.
As a first step, all beneficiaries wherein no funds transfers have been made in the last 180 days are deactivated.
a) Additional deactivation choice is provided at the time of Beneficiary Registration.
b) Additional warning message, in case no transfer has been made to the respective beneficiary in the last 90 days.
c) Auto disabling of beneficiary in case the transaction is returned with the reason ACCOUNT CLOSED.
Which bank in India will be the first to implement this?