Know how to add beneficiary for seamless fund transfers.
Are you looking to transfer funds to a friend or relative? You can now do this easily with the Net Banking or Mobile Banking facilities offered by your bank. You can do an electronic funds transfer to account holders within your bank or those held in other banks as well. But before you do that, you will need to add the bank account details of the recipient so that they can receive funds. This article explains the steps to add a beneficiary and the subsequent fund transfer processes.
In banking, a beneficiary is a recipient of fund transfers. The beneficiary may have a bank account in the same bank as yours or another bank. You need to provide the fund transferring bank with specific details of the beneficiary before you can initiate the fund transfer via payment channels like Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) or the National Electronic Fund Transfer (NEFT).
Here are the steps to add a beneficiary
It takes a cooling period of 30 minutes to add beneficiary on the back end, after which you can initiate the fund transfer.
This completes the fund transfer process.
Some banks allow you to make a quick, one-time fund transfer of up to INR 50,000 without adding a beneficiary. The other option to transfer funds to an account without adding a beneficiary is to make an IMPS transfer using Mobile Money Identification Number or MMID. MMID is a seven-digit unique number. With the MMID and contact details of the beneficiary, you can initiate IMPS without adding beneficiary.
The main benefit of adding a beneficiary to your account is the ease of transferring money to your payee through NEFT, IMPS and RTGS channels. Also, once you have added a beneficiary, you can continue to make repeated payments anytime in the future without the hassle of adding their details again.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.