Money transfer using a banking system is very safe and secure for individuals. Bank systems have a variety of different mechanisms in place to prevent any unauthorized transactions but still, there can be some cases when the fund transfers can reach an unknown account.
RBI has guided all the banks and financial institutions to deploy certain safety mechanisms to prevent unauthorized electronic banking transactions.
But sometimes we accidentally make payments to an unknown account. If you are facing the issue of transferring funds to the wrong account then RBI has provided a funds recovery process as well.
In this article, we will discuss how to recover the money transfer done on an unknown account.
Table of Contents
Inform the bank immediately
As soon as you get to know that you have transferred the funds to the wrong account, you should contact your bank via email, customer care number, or by visiting the bank branch and let them know that you have transferred money to the wrong account.
Make sure you include all the transaction details like platform used, Transaction ID, Account number, Bank IFSC Code, etc.
Now, if you have used the wrong IFSC Code to transfer the funds then the banking system will automatically decline the transaction stating the bank risk code or sometimes the funds will automatically get credited to your account after it gets deducted.
But, it might take time but, still you should contact the bank regarding the wrong fund transfer. The bank might take 2 months or more to resolve the dispute. You can contact the bank branch and get details about the account where your money is lying.
Once you notify the bank about your mistake, the bank will contact the bank of the person where you have transferred the fund by mistake and try to resolve the dispute by contacting the person.
The bank branch will then transfer your money from that person’s account (with consent) to your account. The consent of the person is important, the bank will not transfer if the person shows no consent.
File Complaint with banking Ombudsman
If the person shows no consent for transferring funds then you can raise the complaint to the Banking Ombudsman.
Banking Ombudsman is an authority appointed by the RBI to address the complaint of the customer regarding any banking services. It is a quasi-judicial authority that can resolve your dispute by reviewing your complaint and looking into the matter.
You can register a complaint to Banking Ombudsman online. The following are the step that you can follow to register a complaint to Banking Ombudsman-
- Visit the official website of RBI Banking Ombudsman by following this link-https://cms.rbi.org.in/cms/IndexPage.aspx?aspxerrorpath=/cms/cms/indexpage.aspx
- Now, Click on the “File a Complaint button”
- A form will appear which you have to fill using correct details
- After filling in the details correctly, you can upload supporting documents or details(if any) like copy of the complaint, bank reply, evidence, etc.
- Now, click on the Submit button
- After clicking on the submit button, you’ll be provided with a Complaint Number using which you can track the status of your complaint
The banking ombudsman will resolve your issue within a month and you’ll be able to transfer the fund accordingly. You cannot receive the funds on your bank account, you’ll be asked for the account where you want to transfer and the transfer of the amount will be done.
Register a Court Case
At last, you can reach out to your nearest district court to resolve the issue. However, this is only recommended if the amount that you have transferred is big.
If the amount is small and you filed a court case then you also have to hire an attorney that can be expensive. The procedure of filing a court case will be done by the attorney only.
Try to Reach out to the Person
The fastest way to resolve the
The fastest way to resolve the wrong account fund transfer is to contact the person whose account you have transferred the fund to and ask him/her to transfer the fund back to your account.
You can get the details of the person from your bank branch for which you have to contact the bank branch manager. Your bank branch will help you fully to recover your funds back.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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