Money is increasingly becoming cashless and people tech savvy. This means the good old cheque payments and cash transfers are getting replaced with online transfer through netbanking- largely NEFT.
NEFT is a method to transfer money from one bank account to another, provided relevant details of the beneficiary are given at the time of transfer (bank account no. and bank branch code called IFSC no.). Money transferred through NEFT generally reaches the beneficiary the same day or at max the next day provided the transfer is done during banking hours/days.
One of the important part of transferring money online is registering a beneficiary in your bank account. The process is simple, but should be done with utmost care to avoid transferring money to someone else erroneously.
One simple trick for ensuring correctness is to do a “test” transfer of minimum value, say Re 1 and then asking the beneficiary to check his/her bank statement to verify if the amount has got transferred. This ensures fool proof validation of bank account no. This also helps in putting the onus on the beneficiary in providing the right account no. as well as mitigates any clerical error on part of payee at nominal cost of transfer charge (typically Rs 5).