Money transfer to wrong bank account? Here is how to get it back - netbanking tip
Transferring money from one bank account to another is an extremely easy affair, with almost instant transfers taking place over the internet. But what happens if you transferred money to wrong bank account? It happens and it is a big problem that requires certain steps to be taken immediately by the person concerned as the money will not return on its own. Here is our netbanking tip for those who made a money transfer to wrong bank account.
These transactions are between the remitter (or sender) and the beneficiary (or receiver) and funds can be transferred within minutes at the most. However, unlike systems like UPI that rely on QR codes, phone numbers and other easy to use methods of selecting a beneficiary, other forms of transferring money require a beneficiary's details to be manually added before making the first transaction.
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According to the Reserve Bank of India rules, the remitter is responsible for providing the correct beneficiary account information while making a payment. This means that once a transfer is done, reversing it is nearly impossible without approval from the beneficiary. Yes, you read that right! This is why users should check the beneficiary details at least twice before making a transaction. However, in some cases, mistakes do happen which means that people might accidentally lose money.
Here is how to start the process if you transferred money to wrong bank account:
Step 1) Inform your bank and your local bank manager immediately, and provide them with all the details of the transaction including the time, the incorrect account and the intended beneficiary's account.
Step 2) The bank can act as a facilitator and point you towards the bank and or branch where the money might have been transferred, and you can request a reversal of the transaction from that bank. If the recipient is from the same bank, the bank might approach the recipient and attempt to reverse the transaction after gaining their approval.
Step 3) It is important to maintain a proper log of all your communication with the bank and other banks (if applicable) and all of the activity that was related to the transaction. If the recipient refuses to transfer the money back, you might have to pursue the legal route that might take time and effort.
How to prevent losing your money in a wrong transaction
1) As the remitter, a customer is responsible for entering the correct information on the bank's website, by using the correct IFSC code and the correct bank account number. It is better to verify twice or thrice before performing a transaction.
2) It is better to try and transfer a small amount of money to verify that the recipient has received the money (this can be done with a phone call) before making a larger transaction. Pursuing the bank to retrieve ₹100 is a lot easier than trying to get back a few lakhs.
3) Keep the contact details of your local bank's branch handy and save them for easy access in case a mistake occurs and the beneficiary can be notified as soon as possible, which might help in the transfer of the funds back to the remitter's account.