How Do I Get My Money Back, If Funds Are Not Credited To Beneficiary Under NEFT?

NEFT is a popular mechanism to remit money, despite the emergence of IMPS and UPI. However, at times the payment fails and for some reason, it is not possible to credit to the account of the beneficiary for any reason, destination banks are required to return the transaction (to the originating branch) within two hours of completion of the batch in which the transaction was processed. There could be various reasons why a credit is not possible, including a closed or a frozen bank account, or incorrect details like name and or the IFSC code itself.

What are the penalties/compensation for delayed credit or return of funds by beneficiary bank?

If the NEFT transaction is not credited or returned within two hours after batch settlement, then the bank is liable to pay penal interest to the affected customer at the current RBI LAF Repo Rate plus two percent for the period of delay / till the date of credit or refund, as the case may be, is afforded to the customers’ account without waiting for a specific claim to be lodged by the customer in this regard.

What happens if I write wrong account number of beneficiary?

The credit is given to the account number written / given by remitter in his / her application / instruction. Credit to beneficiary account is released solely based on account number. It is the responsibility of remitting customer to write correct account number. The originator / sender should exercise due care in providing the correct account number of the beneficiary, in the NEFT remittance instruction/ application.