Miswritten Names in Internet Banking: Understanding the Implications

Misspelled names happen ALL the TIME. Banks are used to all those spelling errors. The crucial point is the CORRECT ACCOUNT NUMBER. So, yes, your transfer will go through even with a misspelled beneficiary’s name. But what is the process behind it, and how do banks handle such situations?

Bank Response to Miswritten Names

My experience has been that the receiving bank will report the mistake to the sending bank. If the sending bank sends a correction, the transfer will proceed. This process ensures that the correct information is eventually transmitted, even if there was an initial error. This redundancy is a built-in safeguard to prevent financial errors.

Understanding Internet Banking Transactions

Over the internet, the transfer of money can be done through various methods such as IMPS (Immediate Payment Service), NEFT (National Electronic Fund Transfer), RTGS (Real Time Gross Settlement), and UPI (Unified Payment Interface). These are commonly known as online transactions. Such transactions typically require only specific fields, such as:

Account number and IFSC Account number and MMID (Mobile Money ID) UPI id

In some cases, the beneficiary name might be asked. However, in most situations, this does not affect the transaction as long as the essential parameters are correct.

Situational Outcomes of Incorrect Entries

If the account number and IFSC are correct, the transaction will go through, and the payee will surely receive the funds. Conversely:

If the account number is correct, but the IFSC is invalid or incorrect, the transaction will fail. This is because the recipient bank cannot confirm the validity of the transaction. If the IFSC is invalid, the app/website will not allow the transaction to proceed, as there is no recognized IFSC code.

The beneficiary's name is technically redundant in the case of online fund transfers. The primary and essential elements for a successful transaction are the correct account number and IFSC. As long as these are accurate, the transaction will process without issues, regardless of any discrepancies in the beneficiary's name.

Conclusion

Banks have robust systems in place to handle such errors. Although a miswritten name might seem like a critical issue at the time of transfer, the core information such as the account number and IFSC will ensure that the transaction is successful. Always ensure that the account and IFSC details are correct, and you can relax about the beneficiary name, as long as the rest of the information is accurate.