Hello All,

I wanted to start a thread to discuss the views on whether NEFT / RTGS or any other RBI approved fund transfer method is safe to use during bitcoin trade.

Some of the issues that come to my mind are outlined below. Please feel free to discuss and give your thoughts. If i have left out any issues that you or someone whom you know has faced in the past, then throw it out here for discussion.

1) NEFT / RTGS transaction can be reversed by the originating person.

I did some research and skimmed through the RBI guidelines and found that before the amount is debited back from the beneficiary's account, the beneficiary's bank will have to take an authorization from the beneficiary. As per the RBI Guidelines, it is against the law to debit his account without his / her authorization eventhough the originating bank has made a request.

This is one of the reason, RBI advice banks to do a maker-taker check which includes parameter match like Name, Account Number, IFSC Code and the Branch before processing the transfer. This has been put in place as reversing the transaction is difficult if the amount is credited to a wrong account.

If this is the process, then doesn't this make NEFT and RTGS safe against reversing of transfers.?

2) NEFT / RTGS can be sent from a Hacked or a compromised account.
This is again a completely different story, though some of the banks have 2FA, there is some possibility that a transfer is made through a hacked account.
Again, this risk is implied when using any payment gateway.

So any thoughts / expert advise on why we cannot rely on NEFT / RTGS fund transfer for BTC trade.?