Wednesday, April 22, 2015

What should you do if you transfer money to wrong bank account?

What should you do if you trasfer money to wrong bank account?



Online transfers are convenient, fast and cost nothing extra. All you have to do is register a person as a beneficiary by giving their account number and bank IFSC code and you can transfer money real time. But what if you accidentally send money to a wrong bank account?

It is important that you take precautions:
  • To reduce the possibility of errors, customers have to key in the beneficiary account number twice. Also, if there is a mismatch between the account number and the IFSC code, the system will not accept the entry.
  • Checks like sending a smaller amount, copy-pasting rather than typing the account numbers will save you a lot of trouble later.
  • Moreover, post adding a beneficiary, there is also a cooling period of 30 minutes during which you cannot transact.During the cooling period, some banks send customers text notifications on their registered mobile numbers, confirming the account number of the beneficiary they have added. Customers can reconfirm the number at this stage. Some give you the option of adding the beneficiary's mobile number when you register so that they can be intimated via sms.
However, chances of errors still persist. If you accidentally put one digit wrong and it doesn't correspond to the account holder's name, the transaction can still go through.
It is also possible that you had the wrong account number to begin with. You can also mistakenly put an extra zero to the amount to be transferred.
According to the regularor, responsibility to provide correct inputs in the payment instructions, particularly the beneficiary account number information, rests with the remitter or originator. So, the onus of the mistake will solely be on you.
 
So inform the bank immediately.
The turnaround time also depends on how quickly the customer alerts the bank, the banks involved and the stage at which the transaction is at. "If the remitter and beneficiary accounts are with the same bank, the process is quicker. If you alert the bank within an hour, the money could be reversed immediately,".
 
The beneficiary has to be intimidated as well. Without the beneficiary's permission, the bank cannot reverse the transaction. If the beneficiary refuses to cooperate, then you will have to take legal recourse.
The regulator clearly states that, "In cases where it is found that credit has been afforded to a wrong account, banks need to establish a robust, transparent and quick grievance redressal mechanism to reverse such credits and set right the mistake". However, this is not a regular procedure for banks. "Since the occurrences are pretty low, say two to three cases a quarter, most banks do not have a formal redressal process in place,".

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