You may know everything about Debit and Credit Cards, but if you are a first-time user of the instant money transfer facility offered by banks, then keep these tips in mind.
Picture this. You wanted to transfer money to one account, but found out that it actually got misdirected to a wrong account. Don’t panic yet! We’ll tell you what to do.
Online transfer? Only your account number is important
According to a notification from the Reserve Bank of India, only the beneficiary’s bank account is important for an online money transfer. Other information, like the beneficiary’s name and the IFSC code, is optional.
The responsibility of rechecking the account holder’s name and other details rests with the bank officials. They should point out any inadvertent errors to you. However, this is not a rule set in stone.
At the end of the day, the person remitting money through an online transfer is required to check and confirm that all account details are correct before allowing the bank to process the transaction.
Additional Reading: Getting Started With Money Transfers
Errors happen. We are only human, right?
Let’s say you made an error while entering the account number or other details when transferring money. Here’s what you should do:
- Inform your bank
Do it immediately. Notify your bank about any unintentional errors made on your part.
- The bank will contact the beneficiary account holder
Your bank will then contact the unintended recipient of the money and explain the error in transfer. The bank will then request them to permit a reversal of the transaction.
Most of the time, the account holder allows the reversal of the transaction and you get your money back. But remember, your bank cannot process a reversal of the transaction without getting permission from the account holder who has erroneously received the money.
Additional Reading: Money Transfers: NEFT, RTGS And IMPS Explained
How to avoid this situation
Spend an extra few minutes to verify all the details of your online money transfer before processing the transaction. This way you can be sure that your money will reach the intended recipient.
Additional Reading: Money Transfer Terms You Must Know
Hi Dheeraj Kapoor,
You have shared a very valuable information here I appreciate that : )
I always wonder what happens when money is transferred or deposited in a wrong bank account then what happens??
But I got the answers to that question today.
Thank you, Djeeraj Kapoor.
Hi Akash, Thank you for your comment. We’re glad we could be of help. Please keep reading our blog for more. Cheers, Team BankBazaar
This information was helpful.
Could you clarify what if the amount is transferred to incorrect account number (one digit less), and the amount is deducted from my account?
When can i expect the refund?
Hi vibhash kumar,
This will vary from bank to bank since each bank will have a different policy on refund of erroneous transactions. Kindly get in touch with your bank to get a confirmation on the same.