Finance

What should you do when you transfer money to the wrong account?

Transferring fund from one location to another requires careful consideration. This is no different for those sending money to India. But there will come a time, where there is a chance of sending funds to the wrong account. This can occur due to human error, discrepancies in the account number, IFSC code or both, or even a technical glitch from the banking institutes end. In this case, the most important thing to remember is that if a transaction has been made, it cannot be reversed without approval from the beneficiary.

When this occurs, surely you would not want to run around from pillar to post to get the transaction reversed. So what do in when this occurs? Here are the steps you need to take:

Take a quick action

The first step you need to take is to inform the bank or the bank manager as soon as the transaction has been made. In the occasion you have entered a bank account that does not exist, the funds will automatically be returned to the account. However, if the account number you have entered exists, then you must contact your bank manager. You must then provide relevant evidence that you transferred your funds to the wrong beneficiary’s account. If the unintended beneficiary and the intended beneficiary share the same name, you will need to prove the transfer itself was wrong, even before the bank could provide assistance. The action that bank will consecutively take will also depend on the type of bank account you have sent to. If the unintended bank is of the same bank, the bank will act as an intermediary to transfer the funds back to the original account or reverse the transaction. However, if the beneficiary is of another bank, then you would be required to approach the bank and meet the manager to get the ideal solution. During this process, ensure that you detail all the steps and process you have undertaken. Emailing the details to the respective parties is one way to keep yourself and everyone in the loop.

What if the wrong beneficiary refuses to return the funds?
If you are sending money to India to an account, where the account holder refuses to send funds back home, here are a few steps you can follow:

• The first thing you must remember is that you cannot take back the funds without the consent of the wrong beneficiary. In this case, the beneficiary must accept that the transaction made was a mistake.
• In this case, you must contact your bank immediately and ensure that they are aware of the update.
• Keep track of your complaint
• You can then seek legal help to gain back the funds if required. This will be a complicated process, especially for international transfers.

The best way to avoid such a situation is to be aware of all the data you are inputting before you make the transfer. Additionally, always cross check all the details before going ahead with the transaction. After all, it is your hard earned funds.

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