If you want to transfer funds from your Union Bank of India account to someone else’s, you will need to add them as a beneficiary to your account. This can be done either through Internet Banking, Mobile Banking or in the bank itself.
To do this, visit your nearest Union Bank of India branch or Internet Banking, Mobile Banking and ask an official to complete the process.
What is a payee/beneficiary in a bank & Why?
Do you have an account with Union Bank of India? If yes, then you should know that there are some special beneficiaries who need to be added. You can add a beneficiary or payee by visiting any branch or following the below steps to do it online.
A payee is basically someone who receives funds from your bank account.
For example, if you have an account with Bank A and make a transfer to your brother, who has an account with Bank B, then you are both payees. You send money from one bank (you) to another (your brother). This process is also known as remitting money.
Payees are categorized as one-time, recurring and existing payees. One-time Payees can be anyone like parents, friends, business partners etc. Recurring Payees can be for your bills like electricity bills and rental payments.
Existing Payees are those who already receive money from your account on regular basis such as mobile phone bills. Here’s how you can add a beneficiary/payee in Union Bank of India:
What are the benefits of adding a payee to my bank account?
When it comes to your finances, it’s important to be as efficient as possible. This means taking advantage of every opportunity to save money and make your life easier. One way to do this is by adding a payee to your bank account.
There are many benefits of doing this. For starters, it can save you time and hassle. When you have a payee added to your account, the money goes directly from your employer or client to that payee, without you having to worry about it.
This can be especially helpful if you receive payments in different currencies, as the money will be automatically exchanged into your home currency.
Another benefit of adding a payee to your bank account is that it can help you stay organized. When you have all of your payments and income coming in through one source, it’s easier to track your finances and stay on top of your budget.
Steps to Add Beneficiary/payee in Union Bank through Internet baking
Step 1: Visit the Union Bank Of India Bank’s official website.
Step 2: Enter your login name and password to access your account. If you forget your User ID & Password Here is to recover them.
Step 3: Select the “Transfers” tab from the menu.
Step 4: Select “Manage Beneficiary” option.
Step 5: Now you must choose the type of beneficiary; in this case, I chose the “Add Within Bank Beneficiary” option. If your Beneficiary is from another bank, select “Add other Bank Beneficiary.”
Step 6: Fill in the required columns with the Payee/personal Beneficiary’s information, such as:
- Beneficiary’s Name
- Account No.
- Bank’s Name
- Branch Title
- IFSC code
- You may specify a maximum Transfer Limit if you like. You can also save it as a favourite.
Step 7: Select the “Continue” button.
Step 8: On the next page Once you confirm the following step, you will see all of the information you submitted.
Step 9: As the second tier of protection, enter your Transaction Password (Guide to Reset Transaction PIN) and the OTP delivered to your registered phone number. If you do not receive an OTP, click the Regenerate Button and wait 2 minutes.
Step 10: At the bottom of the page, tick the “I Accept Terms & Conditions” box.
Step 11: Select the “Confirm Details” button.
Step 12: After that, the beneficiary will be added, and you will be notified that you have done so.
Step 13: In a matter of minutes/hours, the new beneficiary will be activated.
Step 14: You can send money to the beneficiary’s account once they get activated.
Steps to Add Beneficiary in Union Bank through Mobile baking
Step 1: Enter your PIN & Login into U Banking App.
Step 2: Click the Fund Transfer button in the Add New Payee section.
Step 3: Click Manage Payee Button.
Step 4: Select the Payee Type, which in this case is Union Bank.
Step 5: Enter the Nickname, Account Number, IFSC Code, and Account Type, then click Continue.
Step 6: Recheck all of the information in the window and click Confirm.
Step 7: Enter the transaction PIN (Easy steps to Reset Transaction PIN) and press the Submit button.
Step 8: Enter the 6-digit OTP that was delivered to your registered mobile number and press the submit button.
Step 9: You now see the payee details with a success message and a reference number.
Step 10: Allow up to 24 hours for verification and addition of Beneficiary.
Types of Fund Transfer
There is 3 variety of ways to transfer money electronically. Which one you choose will depend on your needs and what is available to you. The most common types of fund transfers are:
What is NEFT?
National Electronic Funds Transfer (NEFT) is a 24×7, electronic payment system that enables individuals, companies and other entities to transfer funds from any bank branch to any individual or business across various locations in India.
Anyone with an account in any bank can send funds across locations using NEFT. In addition, non-bank customers like MFIs and corporates can also use NEFT.
NEFT has been operational since 1995. It was launched by RBI as an alternative to cheque payments for small value transactions. Since then it has grown significantly and today it is one of the most widely used methods for fund transfers in India.
It is particularly popular for fund transfers within a city or between banks located in different cities/locations within India.
What is RTGS?
RTGS stands for Real-Time Gross Settlement. It is the process of settling financial transactions in real-time. RTGS transfers are immediate, meaning that the money is transferred from one bank to another as soon as the transaction is processed.
This system is used for high-value transactions where the settlement finality is required immediately, without any risk of reversal.
What is IMPS?
IMPS is an Instant Money Transfer Service launched by the National Payments Corporation of India (NPCI). Using IMPS, money can be transferred from one bank account to another instantly. For Example, if Mr Johny wants to send some money to Mrs Mary.
He will have to give his bank account details and Ms Mary’s bank details. Then a message will be sent directly to Ms Mary’s bank asking them to transfer Rs 1000 from Mr Johny’s account to Ms Mary’s account. This transaction will happen within seconds and you don’t need any waiting time for it.
After adding your beneficiary to UBI, you may transfer money directly to their account. You don’t need to inform them when you make a fund transfer. However, if there is any fraudulent activity on your account, you should immediately contact your bank for further action.
There are two ways for making fund transfers; via net banking or mobile app (for customers using Android-based smartphones). You can also use ATMs located within UBI branches and other ATMs located across India.
Thank you for reading my post about how to add beneficiaries to the union bank of India. If you have any questions related to UBI accounts, please feel free to ask me through the comments section below. I will be happy to help you out with my knowledge about union bank of India accounts.