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What To Do If You Transfer Money To A Wrong Bank Account?
Have you ever wondered what will happen if you transfer money to a wrong bank account? Can the bank reverse the transaction? Can you do anything to get it back?
A bank can reverse the transaction only if it has the approval of the beneficiary. Therefore, it becomes extremely important to check the account before transferring the money. The bank can only act as a facilitator and does not have the power to reverse the transaction.
According to the Reserve Bank of India, it is on the onus of the remitter to check the beneficiary account number and other details before sending the money. In fact, the RBI states that the bank does not have to check the details.
Before getting into what you should do if you make a transaction to a wrong bank account, here are the common reasons as to why you could make a wrong transaction:
- Due to technical errors
- Due to manual errors
- Sometimes, a technical issue from the bank’s side can cause the error
Now that you know how all can the transaction go to a wrong bank account, here’s what you should do:
- Inform the bank immediately after the wrong transaction. The amount will be refunded to your account if the account you transferred the money to does not exist. However, this step is necessary if the case is otherwise.
- Furnish all details to the bank that prove the transaction was done to a wrong account.
- It is advisable to write the matter in detail to the bank.
- In a case where the unintended beneficiary and the intended beneficiary share the same name, then you need to provide some substantial evidence to prove the same.
- If the unintended beneficiary is of the same bank, you can do the above steps. However, if the beneficiary is from a different bank, you will have to personally go to the bank branch and request for the same.
Things might work out if the beneficiary agrees for reversal of the payment. However, what if the individual refuses to approve the reversal?
It is not possible to reverse the payment unless the beneficiary gives a consent for the same. If the beneficiary refuses, you must update the bank on the matter. You could take the legal route; however, the process is time-consuming and might involve too many formalities, especially if the remitter’s and beneficiary’s bank are different or in different cities.
If the beneficiary refuses to approve the reversal, then it is not possible to recover the amount.
According to the RBI, it is the responsibility of the remitter to provide the correct number. Before transferring an amount it is always advisable to check the account number twice, or maybe even thrice to ensure the number is correct. Moreover, you could do a test transfer with a small amount like ₹100 to be sure about the beneficiary. It’s your hard-earned money; therefore, it is you who has to be careful and cautious.
