When it comes to money transfers, we're all concerned, and rightfully so! We usually verify every last detail as much as possible before sending the amount. But since we are humans, mistakes can happen anytime.
If you miss a single number, your hard-earned money can end up in the wrong account. It would be challenging, and even more, if a substantial amount is at stake. If you’re stuck in this situation, the first thing you should do is maintain composure.
Read on to learn about all the elements you should be aware of in case you need help with- how to retrieve money sent to the wrong account.
Why do incorrect transactions occur?
Transferring money requires a good amount of manual input. However, even the smallest distraction can transfer money to the wrong account number. For this reason, when entering the recipient's account number, IFSC Code, and other details, it is crucial to pay special attention. It could help you avoid a large loss with just one easy check.
The classic instance of haste leading to waste is the next issue. It becomes difficult to spare time because we are all busy. It may result in a wrong account money transfer when typing in the alpha-numeric keys on your laptop or smartphone. It is, therefore, crucial that you handle the money transfer process in a calm and collected manner.
Lastly, a technical error may also result in an incorrect money transfer. The likelihood of this occurring is low, though. Additionally, these errors usually self-correct, returning the money to your account immediately or over a few business days.
By RBI norms, the remitter is responsible for providing accurate and legitimate recipient details at the time of fund transfer. Nevertheless, the beneficiary's name must be included in the instruction request and the fund transfer message. Fund transfers are only made possible by the beneficiary account number. This previously mentioned rule applies to both offline and online money transfer methods.
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What occurs if the wrong transaction is successful?
You can take the following actions if you have unintentionally initiated a transfer from your savings account to the incorrect account and the money has been credited to the account of the other bank:
- Firstly, report the occurrence to your branch or contact your relationship manager.
- Record all the information related to the incorrect transaction.
- Provide a written application and submit all the information, including screenshots, if any.
- If the account is held by the same bank, the bank may take on the role of facilitator and ask the beneficiary for consent before starting the process of transaction reversal.
- If the beneficiary account is held by a different bank, you should contact that branch and ask for the transaction to be reversed.
- The beneficiary will receive a call from the branch requesting a credit reversal.
Is it possible to undo a bank transfer?
One issue remains after completing all the procedures and filing the transaction complaint: how do I get back my money transferred to the wrong account?
As was already indicated, if the account number given is incorrect or nonexistent, the cash will be instantly returned to your account.
The recipient will be solely responsible for any fund reversal if the facts provided are accurate and the payment is processed. Refunds would be easy to obtain if the person who received your money gives consent for the transaction to be reversed.
What happens after the wrong transaction complaint?
If the transaction occurred within the same bank, the bank will initiate contact with the incorrect recipient and request the reversal. Your bank will serve as a facilitator in the situation that the transfer has been done to a different bank by giving you information about the incorrect recipient's bank and branch. You can then contact the concerned manager in person and clarify the matter accordingly.
Carry all documentation and correspondence related to the wrong transaction that might be needed. Next, the bank manager will contact the recipient and request them to retransfer the amount to you.
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Things to do if the incorrect recipient refuses to return the funds
Refunding the money is not possible without the beneficiary's approval when it comes to recovering your money. Although there is some difficulty in the process, the person must acknowledge that an incorrect transaction was made to their account.
The next step is to contact your bank and explain the complete situation. Also, the bank may need you to provide identification documentation, proof of address, and any other information.
- You can also send a detailed email about the situation. This will help keep track of your complaint as well.
- It is possible that the individual will not give your money back. You could file a lawsuit in such a situation. However, if your bank and the beneficiary's bank are not the same, the problem might become more difficult.
- It will take 8 to 10 working days to reverse the transaction if all goes according to the process and the other party agrees to repay your money.
- However, if the beneficiary declines approval, things could get complicated, and recovery would not be possible.
However, it is essential to note that credit reversals can only be started by the bank with the beneficiary's consent when it comes to money getting transferred to the wrong account.
Conclusion
It is essential to double-check the beneficiary's account number and IFSC code before sending any money. It can assist in preventing errors of any kind. If you unintentionally send the payment to a beneficiary you do not know, contact your bank right away to request a transaction reversal.
The sum that has been transferred cannot be undone by the bank. However, you can always submit a formal complaint to the bank.
You can take your issue to the Ombudsman, who renders an impartial verdict if the other person refuses to provide you with a solution. The Ombudsman ensures that the client has not received unjust treatment and knows how to get money back from the wrong transaction.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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