The National Payments Corporation of India (NPCI) on May 06, 2026, issued the Advisory - Processing of Credit to Beneficiary Account.
The following has been stated:
• NPCI observed that some sub-member banks have not properly updated or maintained their IFSC codes in the NACH system, causing transactions to be routed based only on the first four characters of the IFSC code through sponsor banks. This may result in incorrect credits, customer disputes, and operational, financial, and reputational risks. To address this, banks have been advised to promptly update newly allotted IFSC codes in the NACH system, periodically verify and reconcile IFSC details shared by NPCI, and report discrepancies immediately through the CRM system.
• Member banks shall also implement system controls to ensure inward credit transactions are processed only when the IFSC code belongs to the beneficiary bank.
• Transactions containing IFSC codes belonging to another bank or sub-member bank shall be returned with Reason Code “72 – IFSC Code not updated by Sub-member Bank.” NPCI has further directed banks to circulate the advisory among all relevant officials and departments for compliance.
• This advisory shall come into effect from May 15, 2026.
[Notification no. - NPCI/2026-27/AD/001]
