Have you ever made a money transfer at a bank? You fill out a form with your account information, such as your name, account number, and the amount you want to send someone.
You must also fill in the beneficiary’s bank information, such as his name, account number, IFSC code, and amount.
Then you hand it over to the cashier, who checks the information and assures that the funds have been transferred to the account of the person to whom you wanted to send money.
It is possible that the process of transferring the funds will take some time. It depends on whether you’re using the IMPS, RTGS, or NEFT system to send this money.
Meaning of Beneficiary in bank
The beneficiary person is the person to whom you are sending money in banking. The beneficiary bank is the bank that holds the recipient account.
It could be any individual, business, or organization. A beneficiary, in simple terms, is the individual or company who receives the benefits.
Let’s look at the RTGS, NEFT, and IMPS concepts and processes.
Ways to Transfer Money to the Beneficiary
- Instant interbank electronic fund transfer service (IMPS) is a term that stands for instant interbank electronic fund transfer. Money is moved in seconds using this method, which is extensively used to transfer funds via mobile phone or online banking.
- RTGS is an acronym for real-time gross settlement. To transfer funds, all central banks in India and around the world employ this method. Nevertheless, it is limited to transfers of up to 2 lac rupees.
- National electronic fund transfer (NEFT): NEFT stands for national electronic fund transfer. It is an electronic payment transfer system created by India’s Reserve Bank to move large quantities of money from one bank to another. This type of fund transfer is extremely secure and dependable.
How to add Beneficiaries in Bank?
If you want to send money to someone, add their account number as a beneficiary, along with their name, account number, IFSC code, and other information. It is simple to add by following these procedures.
How to Add a Bank Beneficiary:
- Step #1: Go to a net banking or mobile application’s login page and create an account by providing your customer id and password. You can log in with your id and password or a fast access pin if you use mobile banking.
- Step #2: After logging into your account, select the fund transfer option.
- Step #3: On your screen, you’ll see the option to Add Beneficiary. Simply click on it.
- Step #4: Now you must enter the beneficiary’s or company’s bank account information. After filling out this form, double-check the information before clicking the submit button.
- Step #5: An OTP will be sent to your registered phone number and email address. Yes, please confirm the OTP. From your end, you’ve added the beneficiary. The bank will now verify and authorize the information, which generally takes about half an hour.
You may quickly send money and execute transactions after adding the beneficiary.
With payment options like IMPS, NEFT, and RTGS, you can effortlessly send the appropriate amount to any of your family, friends, or business entities.
However, you can make a money transfer without adding the beneficiary account to your net banking or mobile application. You can do this by using MMID and the IMPS mode of payment transfer. So, what exactly is MMID?
MMID stands for mobile money identification number, which is a seven-digit number that is unique. You can easily use this method by simply providing the beneficiary’s phone number.