Funds transferred to the wrong bank account? Here are your options

0

Funds transferred to the wrong bank account? Here are your options

Photo: BCCL

With net banking, you can transfer money to other bank accounts in seconds. Transactions can also be made using NEFT/RTGS, UPI, Google Pay, BHIM. There is no need to wait in long queues at banks and ATMs for most banking-related jobs. Sending and receiving money is more convenient than ever.

However, convenience comes at a price, especially if a sender gets sloppy with such transactions. Making mistakes in remittances is not that uncommon.

So how do you get your money back in case you send the funds to the wrong account? The burden of entering correct details such as beneficiary details in payment instructions lies entirely with the sender, according to RBI.

“The responsibility for providing correct entries in payment instructions, in particular beneficiary account number information, rests with the sender/originator. Although the beneficiary’s name must be mentioned in the request for instructions and carried as part of the funds transfer message, only the account number will be used to grant credit. This applies to both transaction requests originating from branches and those originating from the online/internet delivery channel. The name field in the message formats will, however, be a parameter to be used by the destination bank depending on the perception of risk and/or use for post-credit verification or otherwise,” according to RBI.

In other words, don’t mess up beneficiary details when sending funds online or through physical bank branches.

But errors invariably occur. If you happen to transfer funds to the wrong account and the account details are invalid, your money will automatically return to your account. But what if the account number is valid and the transaction is successful?

“Banks should put appropriate disclaimers on online/internet banking platform funds transfer screens and funds transfer request forms informing customers that credit will be made solely on the basis of information of the beneficiary’s account number and therefore details of the beneficiary’s name will not be used,” according to the RBI notification cited above.

The RBI further states that “banks are generally expected to match the beneficiary’s name and account number before extending credit to the account.”

So, if you accidentally transfer money to the wrong bank account, you can request a refund from your bank by informing them of the RBI directive October 2010. However, it depends on the recipient to authorize the reversal of the transaction.

Related News

RuPay Credit Cards on UPI Transactions up to Rs 2000 with No Merchant Fees

RuPay credit cards on UPI: Transactions up to Rs 2,000 free; zero merchant fees

Related News

Digital Transactions on the Rise Debit and Credit Cards Surpass 1 Billion Points UPI India's Preferred Payment Method

Booming digital transactions! Debit and credit cards top $1 billion; UPI India’s preferred payment method

How to get your money back?

If the beneficiary details such as MMID and mobile number are wrong, there is a high chance that the transaction will be rejected. If you are transferring money using an account number, check the account number you are transferring the money to, as the amount will be credited only based on the account number, according to the State Bank of India (SBI).

In the event of a transfer error, immediately inform your bank that you have transferred the money to the wrong beneficiary account and call customer service. Write down the date and time of the transaction, as well as your account number and the account the funds were transferred to in error. You may be asked to visit a branch.

Go to your bank branch and submit a written request for the bad transfer with the details. Attach screenshot if needed.

The bank will act as a facilitator and provide you with the details of the bank and branch of the account where the money was transferred. If it’s in the same bank, you can check directly with the beneficiary and request a cancellation.

If it is another bank, it is best to visit the recipient’s branch and discuss it with written communication, email and screenshots. In such circumstances, the beneficiary’s branch may call the wrong beneficiary and request that the incorrect credit be transferred back to the remitter.

Share.

Comments are closed.