Banking has undoubtedly transformed in the groundbreaking digital age, with financial transactions taking seconds to complete. However, alongside this convenience comes the vulnerability to human errors. A slip of a digit, an incorrect account number, or an identical name can sometimes result in a harrowing wrong bank transfer. This can be an unnerving experience, but panic and worry should not be your first responses. Instead, you should swiftly proceed towards a solution. Here's what you must do next to get your money back in your bank account.
You should instantly verify the transaction details, especially the recipient's account number and transfer amount. You must immediately contact your bank's customer service if the details seem incorrect.
Adhil Shetty, CEO of BankBazaar.com, said, "In case the account number to which you have made the transfer does not exist, the transaction will be automatically reversed. In case of any delay, your bank can help speed up the process."
However, if the account number exists, then it is a different matter altogether. Shetty said, "If you make an error with the account number and the money is credited to the account of an unintended beneficiary (wrong recipient) with a different name from your intended beneficiary, approach your bank and prove to them that the beneficiary’s name is different. The bank will then contact the other account holder and request the amount to be returned as there is evidence of an erroneous transfer."
"Matters can get complicated if the money is credited to the account of an unintended beneficiary with the same name as your intended beneficiary. In this case, you will have to prove that the transfer itself was wrong before the bank can help," added Shetty.
Remember that most banks adhere to the "wrong recipient's consent" policy in case of incorrect transfers. This means that your bank will contact the wrong recipient's bank, who will then contact their customer seeking their consent to return the funds. If the other party agrees, the refund will be made.
Shetty further explains, "The most important thing to understand is that if a transaction has been made, the bank cannot reverse it from its end without approval from the beneficiary. It can only act as a facilitator. Your bank can help by providing the contact details of the bank and branch of the unintended beneficiary and may even help you connect with the bank manager." However, you may have to do the follow-ups, including requesting a reversal of the transaction and even requesting the unintended beneficiary to transfer the funds back to you.
In cases where the wrong recipient is unresponsive or unwilling to return the funds, your bank generally reverts with a 'recovery unsuccessful’ message. At this point, your next plausible step would be legal recourse.
Shetty says, "There is a very little legal recourse available apart from sending a legal notice to the unintended beneficiary for the return of funds unless you have a written statement from the unintended beneficiary stating that they acknowledge the money was transferred to them erroneously and promise to return it."
The RBI has made it clear that the depositor is responsible for providing the correct account number and IFSC code. RBI guidelines state: “Responsibility to provide correct inputs in the payment instructions, particularly the beneficiary account number information, rests with the remitter/originator. While the beneficiary’s name shall be compulsorily mentioned in the instruction request and carried as part of the funds transfer message, reliance will be only on the account number to afford credit. This applies both for transaction requests at branches and those from the online/Internet delivery channel. The name field in the message formats will, however, be a parameter to be used by the destination bank based on risk perception and used for post-credit checking or otherwise.”
Thus, while the wrong bank transfers can be stressful, quick and appropriate responses may limit the damage. Understanding the process, following it swiftly, keeping calm and double-checking in the future can prevent such financial mishaps from becoming nightmares.
FAQs
It is not possible to get the money back without the consent of the wrong beneficiary. The process is a little tough, but he/she has to accept that there was a wrong transaction made to his/her account. Then, you need to contact your bank and communicate the matter in detail.
Can I get my money back from a bank transfer by mistake? ›
It is not possible to get the money back without the consent of the wrong beneficiary. The process is a little tough, but he/she has to accept that there was a wrong transaction made to his/her account. Then, you need to contact your bank and communicate the matter in detail.
Can you reverse a bank transfer once made? ›
Can I reverse a bank transfer - or can my bank? Online payments, like Faster Payments, transfer money in real-time. Once a payment has been made, you can't stop or reverse it. You have to go through the process of trying to get the money back from the recipient and rely on their cooperation.
Can I get my money back from a bank transfer? ›
If you have transferred money into someone's bank account but want it returned,you will have to ask them to pay it back to you. However if the payment resulted from a transaction paid via a credit card,or eBay or PayPal you can dispute the transaction and maybe get a refund.
How do I get my money back from the wrong bank account? ›
What if I transfer money to the wrong account? If you have made a mistaken internet payment, you need to contact your bank or credit union immediately. Your bank or credit union will then contact the unintended recipient's bank to try and get the money back.
Can money be returned after bank transfer? ›
If you reported it between 10 business day and 7 months, the other bank must freeze the funds and give their customer 10 business days to prove the money belongs to them. If that person does not do that, the other bank must return the money to your bank within 2 business days.
Can you reverse a bank to bank transfer? ›
So, in a nutshell, you cannot reverse your wire transfer once the funds have been sent to the receiver and no extenuating circ*mstances were surrounding that error-laden transfer. Wire transfer institutions and banks typically address the sender's liability if they have given the wrong account information.
What happens if I make a wrong bank transfer? ›
You must immediately contact your bank's customer service if the details seem incorrect. Your bank can help by providing the contact details of the unintended beneficiary. Follow up by requesting a transaction reversal and asking the unintended recipient to return the funds to you.
How do I undo a bank transfer online with a mistake? ›
Contact your bank immediately after realizing the mistake. Banks may be able to stop or reverse the transaction if it has not yet been processed. The success of reversing the transaction depends on the bank's policies and the timing of the request.
How long does it take to reverse a bank transfer? ›
There are various factors that may influence how soon a bank reverses a wire transfer, including the banks involved and the reason for the reversal. In general, reversing a wire transfer can take a few days to a week or more. If it was made by the same bank, it may be reversed more quickly, usually within a day or two.
So what happens when money is accidentally deposited into your account? You may wonder if it's a case of “finders, keepers.” The only time that you can keep funds added to your bank account is when the money deposited was legitimately meant for you.
Can you retract a money transfer? ›
It isn't possible to reverse a wire transfer if the recipient bank has already accepted it.
How long does a bank have to reverse a payment? ›
First, the reversal must be sent to the bank within 24 hours of noticing the error and no later than 5 banking days after settlement. Then the payment originator must also reach out to the payment recipient to inform them a reversal is in progress.
How to get your money back after a wrong transfer? ›
The first thing you need to do in case of an incorrect money transfer is to inform the bank. You can do this by quickly calling up the customer care number and providing them with all the details of the transaction. They will provide you with a request or complaint number.
How to reverse a bank transfer? ›
You can't reverse or cancel a direct bank transfer (sometimes known as BACS or Faster Payments).
Can you retrieve money sent to a wrong bank account? ›
Speak to your bank
Make sure you have all your details handy (including details of the transaction). Your bank should act within 2 working days. They should contact the bank that's received the money and ask for the money to be returned.
Can money be taken back after a transfer? ›
The bank may be able to reverse the transfer if it can prove that the transfer was fraudulent. Errors: If the sender made an error when initiating the wire transfer, such as entering the wrong account number, they may be able to request a reversal. However, this can be a difficult process and is not guaranteed.
How do you reverse a money transfer by mistake? ›
- You must immediately contact your bank's customer service if the details seem incorrect.
- Your bank can help by providing the contact details of the unintended beneficiary.
- Follow up by requesting a transaction reversal and asking the unintended recipient to return the funds to you.
Assuming this is not a scam, you send it back. You should contact your bank, however, and ask them to confirm that the deposit was legitimate. For example, someone might send you money and then reverse the transaction. That way, when you “refund” it, you would actually be sending them money.
Can I keep money wrongly transferred to me? ›
You cannot keep money that was mistakenly deposited into your account; it must be returned. Failing to report and return the money could result in legal consequences, such as criminal charges.
