To transfer money to an individual or an entity, an account holder must first add them as a beneficiary to their account.
Currently, we support 2 types of beneficiaries:
Bank account beneficiary : Here, the account number and IFSC are used to create the beneficiary. Money can be transferred to the beneficiary via NEFT, IMPS, or RTGS.
VPA beneficiary : Here, a VPA handle (UPI ID) is used to create the beneficiary. Money can only be transferred to the beneficiary via UPI.
Creating a beneficiary lets account holders make multiple transfers to an individual or entity without the hassle of entering their account details for each transfer. This helps prevent wrong transfers that can arise due to human error.
A large number of first-time transfers fail because:
- Incorrect details were used to create the beneficiary.
- The account is inactive or frozen.
- The VPA handle (UPI ID) was deactivated.
Such failures can be avoided by verifying the account details before creating the beneficiary.
Our Account Verification APIs allow account holders to instantly verify the validity and ownership of a bank account or VPA handle. This not only prevents transfer failures but also prevents transfers to the wrong individual.
Learn more about Account Verification APIs.
Updated about 1 year ago