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This guide explains the LTA exemption limit, what travel expenses qualify and how the 4-year block year system works under Section 10(5) of the Income Tax Act. You’ll also find the exact claim rules, a worked example and answers to common LTA questions. 

Leave Travel Allowance, or LTA, lets you claim tax exemption on domestic travel fares for yourself and your family, up to 2 trips in a block of 4 years. This guide covers the LTA exemption limit, what counts as eligible travel, block year rules and how to claim it correctly. 

QUICK STAT 

The current LTA block period runs from 2022 to 2025, allowing up to 2 exempt journeys, with 1 unused journey eligible for carry-forward into 2026.  (Source: Income Tax Department, Section 10(5)) 

What is Leave Travel Allowance (LTA)? 

LTA is a salary component that covers travel costs when you go on leave, with or without your family. It falls under Section 10(5) of the Income Tax Act, 1961, read with Rule 2B of the Income Tax Rules. 

LTA isn’t automatically tax-free. It’s part of your CTC and the exemption only applies once you travel and submit proof — skip a trip and it’s taxed as a regular salary. 

Expenses Covered Under LTA Exemption 

LTA covers only the fare for the journey, not hotels, food or sightseeing. What counts depends on the mode of travel: 

Mode of Travel	What Gets Exempted
Air travel	Economy airfare of a national carrier, by the shortest route
Train travel	AC first class fare for the shortest route, even if a lower class was used
Other recognised transport (no rail link)	First class or deluxe fare of a recognised public transport system
No recognised transport available	Amount equal to AC first class train fare for that distance

DID YOU KNOW? 

Only the employee, spouse, dependent children and, in some cases, dependent parents and siblings qualify. For children born after October 1, 1998, the exemption applies to a maximum of 2 surviving children. 

LTA Exemption Limit 

The exemption is capped at the lower of your actual travel cost or the LTA amount fixed in your salary structure. Three rules decide how much you can claim over time. 

1. Block Period Rule: LTA exemption can be claimed for 2 journeys within a block of 4 calendar years. The current block runs from 2022 to 2025. 

2. Carry Forward Option: An unused journey can be carried into the first year of the next block, on top of that block’s own 2 journeys. 

3. Travel Costs Only: The exemption never extends to hotel bills, food or entertainment during the trip. 

LTA Claim Rules 

Getting the exemption approved comes down to five steps: 

1. Take actual leave from work for the travel period. 

2. Travel by the shortest available route. 

3. Keep original tickets, boarding passes and invoices as proof. 

4. Submit proof to your employer’s HR team before their deadline. 

5. Remember, LTA exemption isn’t available under the new tax regime, regardless of travel spend. 

WATCH OUT 

Domestic travel only counts. Any international leg of a trip is excluded entirely, even if combined with a domestic one. 

LTA Block Year Explained 

A block year differs from a financial year. It’s a fixed 4-calendar-year cycle set by the Income Tax Department, starting from 1986-89. The current block is 2022-2025 and the next runs from 2026-2029. Since it follows the calendar year, not April-to-March, it’s worth tracking separately from your usual tax planning. 

LTA Under the New Tax Regime 

Under the old regime, LTA exemption works as described above, subject to the block year and travel rules. Under the new regime, LTA exemption isn’t available at all, even with valid travel proof. 

Scenario	Old Tax Regime	New Tax Regime
LTA claimed with valid proof	Exempt up to actual cost or entitlement, whichever is lower	Fully taxable
LTA not claimed	Taxable as salary	Taxable as salary
Actual cost lower than entitlement	Difference is taxable	Entire amount taxable

LTA for Government and PSU Employees 

Government employees and PSU staff follow the CCS (LTC) Rules, 1988 instead of standard salary-based LTA, which add extras like escorted hill-station travel and their own proof formats. Private sector employees follow their employer’s HR policy instead. 

DID YOU KNOW? 

During the pandemic, a one-time LTC Cash Voucher Scheme let employees claim exemption on select purchases instead of travel. That scheme has since lapsed. 

Benefits of Leave Travel Allowance for Salaried Employees 

4. Tax savings: Reduces taxable salary to the extent of eligible travel cost, on the old regime. 

5. Carry-forward flexibility: One unused journey rolls into the next block. 

6. Family travel coverage: Extends to spouse, dependent children and, in specific cases, dependent parents and siblings. 

7. Flexible mode of travel: Covers air, rail and other recognised transport. 

How to Claim LTA Reimbursement 

Here’s how it plays out for Ananya Rao, a marketing manager in Bengaluru with an annual LTA entitlement of ₹28,000. She travels to Kerala with her spouse and child, spending ₹24,000 on economy flights by the shortest route. Only ₹24,000 gets the exemption; the remaining ₹4,000 is added back to her taxable income. 

6. Inform HR before you travel, so leave and LTA claims align. 

7. Book tickets by the shortest route and retain original documents. 

8. Submit the declaration form with tickets and invoices through your company’s portal. 

9. Wait for payroll verification, usually within one or two salary cycles. 

10. Check your Form 16 at year-end to confirm the exempted amount. 

8. Original tickets and boarding passes for every leg of the journey 

9. Approved leave application matching the travel dates 

10. Signed and dated LTA declaration form 

11. Fare invoice or receipt matching the ticket amount 

12. Shortest-route confirmation, if your employer’s policy asks for it 

PRO TIP 

A Mumbai-based chartered accountant who files returns for salaried clients puts it simply: “The biggest mistake isn’t forgetting to travel, it’s forgetting to keep the paperwork.” 

Planning your next trip but short on funds? Fibe can help you travel stress-free with easy financing options. Get cash up to ₹10 lakhs instantly and enjoy flexible repayment options. Visit Fibe or download the app today to explore more for your dream vacation! 

FAQs on Leave Travel Allowance (LTA) 

1. What is the latest block period for claiming an LTA exemption? 

The current block runs from 2022 to 2025 and the next begins in 2026. 

2. How many trips can I claim in one block year? 

You can claim 2 journeys within a 4-year block, plus 1 carried-forward journey if unused. 

3. Can I claim LTA if I travel without my family? 

Yes, the exemption is based on your own eligible fare, not on family members joining. 

4. Who is eligible to claim LTA? 

Any salaried employee with an LTA component in their salary, who meets the leave, travel and documentation conditions. 

5. Is LTA available under the new tax regime? 

No, LTA exemption isn’t available under the new regime; the amount is fully taxable. 

6. Can LTA be claimed for international travel? 

No, LTA applies strictly to domestic travel. Any international leg is excluded. 

7. What happens if I don’t claim LTA in a block year? 

It becomes part of your taxable salary, though 1 unused journey can carry forward. 

8. I missed my company’s deadline to submit LTA proof. Can I still get the exemption? 

Usually not through your employer once payroll is processed; check with a tax professional for your specific case. 

Ever needed to send money but were not sure which method to use? Whether sending money to a friend or managing business transactions, National Electronic Funds Transfer (NEFT) is a safe and reliable way to transfer money. It allows you to move funds between bank accounts across India with ease and high security. 

But how fast is it? Does it work on Sundays? And what should you know before making an NEFT transfer?  

Read on to understand everything in depth without any confusion. 

What is NEFT? 

NEFT is an electronic funds transfer system that allows money transfers between different banks in India. Unlike instant payment systems like IMPS (Immediate Payment Service), NEFT processes transactions in batches at specific time intervals. This means the transfer is not instant but happens within scheduled time slots. 

To make an NEFT transfer, you need the recipient’s following details: 

• Bank account number 

• Bank name 

• IFSC (Indian Financial System Code) 

As NEFT operates digitally, it eliminates the need for physical cash handling, making transactions safer and more convenient. NEFT is commonly used for: 

• Transferring money between personal accounts 

• Making business payments 

• Paying credit card bills 

• Settling utility bills 

How Long Does NEFT Take? 

An NEFT transaction time depends on when you initiate the transfer. Since NEFT works in batches, your transfer gets processed in the next available cycle. 

Generally, NEFT transfers take between 30 minutes to a few hours. The exact time depends on factors like: 

• When the transfer is initiated – If you send money just before a batch processing cycle ends, it may take longer. 

• The recipient’s bank processing speed – Some banks process transactions faster than others. 

• NEFT cut-off times – If you transfer money after your bank’s cut-off time, it might be processed in the next available batch. 

Earlier, NEFT was only available during business hours. However, since December 2019, it operates 24/7. This gives you the flexibility to send money anytime, even on weekends and holidays. 

NEFT Transaction Timings (Old Vs New) 

The National Electronic Funds Transfer (NEFT) system has evolved significantly over time, improving convenience and accessibility for users. 

Day	Old NEFT Timings (Before Dec 2019)	New NEFT Timings (After Dec 2019)
Weekdays (Mon–Fri)	8:00 AM – 7:00 PM (batch-wise)	24×7 available
Saturdays	8:00 AM – 1:00 PM (batch-wise)	24×7 available
Sundays	Not available	24×7 available
Bank Holidays	Not available	24×7 available

 
Key Highlights 

• Old System: Limited to banking hours, processed in batches  

• New System: 24×7 including weekends & holidays, with continuous batch processing every 30 minutes 

NEFT Transaction Timings – Bank Wise 

NEFT (National Electronic Funds Transfer) operates 24×7 across all banks in India, including weekends and holidays. However, the actual credit time and processing speed may vary slightly depending on the bank’s internal systems. 

Here’s a bank-wise overview of typical NEFT processing behavior: 

Major Banks NEFT Timings: 

Bank Name	NEFT Availability	Processing Speed	Notes
SBI (State Bank of India)	24×7	Within minutes (usually < 30 mins)	Highly reliable, even on holidays
HDFC Bank	24×7	Near real-time	Slight delays possible during maintenance windows
ICICI Bank	24×7	Instant to 30 mins	Fast processing via mobile/app
Axis Bank	24×7	Instant to 30 mins	Consistent performance
Kotak Mahindra Bank	24×7	Instant to 30 mins	Smooth digital experience
Punjab National Bank (PNB)	24×7	30 mins to 2 hours	Slight delays in non-working hours
Bank of Baroda	24×7	30 mins to 2 hours	May vary during weekends
Canara Bank	24×7	30 mins to 2 hours	Depends on server load
Union Bank of India	24×7	30 mins to 2 hours	Occasional delays at night
IDFC FIRST Bank	24×7	Near real-time	Fast processing via app

Key Things to Know 

• No fixed batch timings anymore: Earlier, NEFT worked in hourly batches, but now it’s continuous.  

• 24×7 availability: You can transfer money anytime—even on Sundays and bank holidays.  

• Settlement time: Usually within a few minutes, but can take up to 2 hours in rare cases.  

• Delay factors:  

• Bank server downtime or maintenance  

• Incorrect beneficiary details  

• High transaction volume 
   

Pro Tip: If you need instant transfers without delay, consider using IMPS or UPI, as they are designed for real-time payments with immediate credit. 

Does NEFT Work on Sundays and Bank Holidays? 

NEFT works every day even on Sundays and bank holidays. One big advantage of NEFT is that it runs all the time. However, there’s a catch if you go to a bank branch. If you use a bank branch for NEFT, it might not work on weekends or holidays. That is because bank counters are usually closed on these days. If you use online or mobile banking for NEFT, you can send money anytime. The NEFT transaction will go in the batch. 

What is NEFT Cut-Off Time? 

NEFT is available all the time. Banks have different rules. Some banks have a cut-off time for same-day NEFT settlements. Most banks say 6 PM is the cut-off for NEFT transactions at bank branches. If you send money after 6 PM it might go on the day. For NEFT transactions there’s no cut-off time. These are processed all day and night. To avoid delays, you should check with your bank about their NEFT cut-off time. NEFT cut-off times can vary from bank to bank. So always ask your bank about their NEFT rules. NEFT rules can help you plan your transactions better. 

NEFT Holidays 2026 

NEFT (National Electronic Funds Transfer) is available 24×7 throughout the year, including weekends and most holidays. However, transactions may be processed with slight delays on days when banks are closed, as settlements depend on banking operations. 

In 2026, NEFT will continue to function even on public and bank holidays, but users should be aware of the following: 

Category	Holiday / Day	Date (2026)
Public Holiday	Republic Day	26-Jan-26
Public Holiday	Mahashivratri	15-Feb-26
Public Holiday	Holi	4-Mar-26
Public Holiday	Good Friday	3-Apr-26
Public Holiday	Ambedkar Jayanti	14-Apr-26
Public Holiday	Independence Day	15-Aug-26
Public Holiday	Gandhi Jayanti	2-Oct-26
Public Holiday	Diwali (Laxmi Pujan)	8-Nov-26
Public Holiday	Christmas	25-Dec-26
Weekend	All Sundays	Every Sunday
Weekend	2nd & 4th Saturdays	Every Month

Note: NEFT is available 24×7, including holidays and weekends. However, settlements may be delayed due to bank closures. 

Why NEFT is the Safest Method? 

Since it is regulated by the Reserve Bank of India (RBI), NEFT is one of the safest ways to transfer money. Every transaction is recorded and banks use encryption to protect sensitive information. It follows strict security protocols given by the RBI. 

To ensure security, you can follow the below simple tips: 

• Double-check the recipient’s bank details before making a transfer 

• Always use a secured internet connection while transferring money online 

• Avoid sharing sensitive banking details like OTPs or passwords with anyone 

Difference Between NEFT vs. Other Payment Methods 

Table Mentioned 

Now that you know what is NEFT, about NEFT processing time and how it works, it is easy to send money to your loved ones or even make payments safely. 

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FAQs on NEFT Money Transfer Time 

Is NEFT available 24 hours? 

Yes, NEFT is available 24/7 with online or mobile banking, even on weekends and public holidays. 

Does NEFT work on bank holidays? 

Yes, NEFT transactions can be made online on bank holidays. However, transactions made through NEFT-based branch may not be available. 

How long does an NEFT transfer take? 

NEFT transaction time is usually between 30 minutes to a few hours, depending on when you initiate the transfer. 

What is the NEFT transfer time to other banks? 

 NEFT transfers are typically processed in batches and usually take between a few minutes to up to 2 hours to reflect in the beneficiary’s account. However, most transactions are settled quickly, especially during working hours, depending on bank processing speed and network load. 

What are the NEFT timings in India? 

NEFT is available 24×7 in India, including weekends and bank holidays. Transactions are processed in half-hourly batches throughout the day, ensuring continuous fund transfer. However, occasional delays may occur during non-working hours or due to bank-specific processing timelines.

Your registered mobile number is an important link between you and your bank. It is commonly used for transaction alerts, OTPs, mobile banking, UPI registration, security notifications and account-related communication. 

If you have changed your phone number, lost access to your old SIM or noticed that an outdated number is still registered with your account, you should update it through your bank’s official channels. 

If no mobile number is currently registered with your account, the process may be referred to as linking a mobile number with your bank account. If you are replacing an existing number, it is generally referred to as updating or changing the registered mobile number. 

The exact process for how to update mobile number in bank account varies by bank. Some banks allow eligible customers to complete the request through Internet Banking, mobile banking or an ATM, while others may require a branch visit. 

Note: Updating your registered mobile number does not change your bank account number, IFSC, account ownership or other core account details. 

Why Should You Change Your Mobile Number in Bank Account? 

Keeping your registered mobile number updated is important for both security and convenient access to banking services. 

Receive OTPs and Authentication Messages 

Banks frequently use the registered mobile number to send OTPs for transactions, login verification and certain service requests. 

If you no longer have access to the registered number, you may face difficulty completing these activities. 

Get Real-Time Transaction Alerts 

SMS alerts can help you track: 

• Debit transactions 

• Credit transactions 

• ATM withdrawals 

• Card transactions 

• Fund transfers 

• Other account activity 

Receiving these alerts promptly can also help you identify unauthorised activity. 

Use UPI and Mobile Banking 

Your registered mobile number may be required when registering for or using services such as: 

• UPI 

• Mobile banking 

• Internet banking 

• Certain card services 

This is why knowing how to link mobile number with bank account is important when setting up digital banking. 

Complete Service Requests 

Banks may use your registered mobile number to authenticate requests relating to passwords, account services, cards or other banking facilities. 

Improve Account Security 

If your old mobile number has been deactivated, reassigned or lost, leaving it linked to your bank account can create a security risk. 

Updating your details ensures that important OTPs and account alerts continue to reach you. 

Documents Required to Change Mobile Number in Bank Account 

The documents required depend on your bank and the method used to submit the request. 

For an online update, you may not need to upload physical documents if the bank can authenticate you through its existing digital banking process. 

For a branch-based request, the bank may ask for: 

• Mobile number update/request form 

• Bank account details or Customer ID 

• Valid KYC/identity proof, where required 

• Aadhaar, PAN or another accepted identity document, depending on the bank’s process 

• Passbook or other account-related information, if requested 

• Your new mobile number 

Carry original documents if your bank requires them for verification. 

Some banks may also ask you to verify your existing registered number or complete additional authentication before accepting the change. 

How to Change Mobile Number in Bank Account Online? 

Whether you can change your registered number completely online depends on your bank. 

If your bank provides an online mobile-number update facility, the process may broadly look like this: 

Step 1: Log in to Internet or Mobile Banking 

Visit your bank’s official website or open its official mobile banking app. 

Enter your authorised login credentials. 

Step 2: Go to Profile or Personal Details 

Look for options such as: 

• Profile 

• Personal Details 

• Contact Details 

• Service Requests 

• Settings 

The wording differs across banks. 

Step 3: Select the Mobile Number Update Option 

Choose the option for changing or updating your registered mobile number. 

Enter the new number carefully. 

Step 4: Complete Identity Verification 

Banks use authentication controls to prevent unauthorised changes to registered contact details. 

Depending on the bank, verification may involve: 

• OTP sent to the existing registered number 

• OTP or verification on the new number 

• Internet Banking credentials 

• Debit card details 

• ATM PIN 

• Security authentication 

• A bank-specific verification process 

Step 5: Confirm Your New Mobile Number 

Re-enter or review the new number before submitting the request. 

A wrong number can prevent you from receiving OTPs and account alerts. 

Step 6: Submit the Request 

Confirm and submit the mobile-number change request. 

Step 7: Check the Update Status 

The bank may send confirmation through: 

• SMS 

• Email 

• Internet or mobile banking notification 

Processing time varies depending on the bank and the method used. 

Once the new number is registered, future OTPs, alerts and other applicable communication should be sent to the updated number. 

How to Change Mobile Number in Bank Account Offline? 

If your bank does not permit an online update, if you no longer have access to your old registered number, or if digital verification fails, you may need to visit a branch. 

A typical branch process involves: 

1. Visit the required bank branch. Some banks may allow any branch, while others may ask you to visit your home branch. 

2. Ask for the mobile number update form. 

3. Enter your account and customer details. 

4. Provide your new mobile number. 

5. Submit the KYC or identity proof requested by the bank. 

6. Sign and submit the request form. 

7. Complete any additional verification required by the bank. 

8. Wait for confirmation that your registered number has been updated. 

The bank may send an alert to your existing number, email address or new number when the request is initiated or completed. 

Alternate Ways to Update Your Mobile Number 

Depending on your bank, other channels may also be available. 

ATM 

Some banks allow customers to initiate a mobile-number update through their ATMs. 

A typical process may involve: 

1. Insert your debit card. 

2. Enter your ATM PIN. 

3. Select Registration, Services or a similar option. 

4. Choose Mobile Number Registration/Update. 

5. Enter the existing and new mobile numbers where requested. 

6. Complete the bank’s verification procedure. 

Not all banks offer this facility. 

Customer Care 

Customer care can tell you which mobile-number update channels your bank supports and what verification is required. 

However, do not assume that a customer-care executive can change your registered number merely on the basis of a phone call. For security reasons, the bank may redirect you to Internet Banking, an ATM or a branch. 

Bank-Wise Steps to Change Mobile Number in Bank Account 

The mobile-number change process is not identical across banks. Here are examples of how different banks currently handle the request. 

State Bank of India (SBI) 

SBI provides multiple ways to update a registered mobile number. 

Through Internet Banking 

1. Log in to SBI Internet Banking. 

2. Go to My Accounts & Profile. 

3. Select Profile/Personal Details. 

4. Choose Change Mobile Number. 

5. Select the relevant account. 

6. Enter the new mobile number. 

7. Submit the request. 

8. Complete the applicable authentication process. 

9. Check the status communicated by SBI. 

SBI also provides a mobile-number update facility through eligible ATMs. 

Through SBI ATM 

1. Insert your debit card. 

2. Select Registration. 

3. Enter the ATM PIN. 

4. Select Mobile Number Registration. 

5. Choose Change Mobile Number. 

6. Enter and confirm the old number. 

7. Enter and confirm the new number. 

8. Complete SBI’s OTP/reference-number verification process. 

You can also submit a mobile-number update request at an SBI branch. 

YES BANK 

YES BANK currently directs retail customers to visit a branch for changing the registered mobile number. 

The process generally involves: 

1. Visit a YES BANK branch. 

2. Carry your account details and applicable KYC documents. 

3. Fill in the mobile-number change request. 

4. Provide the new number. 

5. Submit the request to the branch. 

6. Complete the bank’s verification process. 

7. Wait for confirmation of the update. 

YES BANK states that alerts may be sent to the existing registered mobile number/email address and the newly updated number during the process. 

Bank of Baroda 

For resident customers, Bank of Baroda’s current guidance provides a branch-based route for updating the mobile number. 

1. Visit your home branch. 

2. Ask for the mobile-number update form. 

3. Enter the required account and contact details. 

4. Submit valid KYC/ID proof along with the request. 

5. The bank verifies the submitted information. 

6. The registered mobile number is updated after successful processing. 

Bank of Baroda also provides separate remote/online options for eligible NRI customers. 

Other Banks 

Other banks may support: 

• Internet Banking 

• Mobile banking 

• ATM-based updates 

• Branch requests 

• Assisted service channels 

Always check the bank’s official website, app or customer-care service before starting the process. 

How to Link Mobile Number With Bank Account 

If your account does not have a registered mobile number, you may need to link mobile number to bank account instead of replacing an existing number. 

Depending on your bank, you may be able to register a number through: 

• A branch 

• Internet Banking 

• Mobile banking 

• An ATM 

• Another bank-approved channel 

You will usually need to authenticate your identity and confirm the number before the bank links it to your account. 

After successful registration, the number can be used for applicable services such as transaction alerts, OTPs, digital banking and UPI. 

Important Tips to Keep in Mind 

When changing or linking your mobile number: 

• Use only official bank websites, apps, ATMs and branches. 

• Never share your OTP, ATM PIN, UPI PIN, Internet Banking password or card PIN with anyone. 

• Keep your old mobile number active until the change is completed, where possible. 

• Enter the new number carefully before submitting the request. 

• Carry applicable KYC or identity documents when visiting a branch. 

• If you have lost access to your old number, inform your bank and ask for the appropriate alternative verification process. 

• Check whether the update needs to be completed separately for any linked products or services. 

• Confirm that alerts and OTPs are reaching the new number once the update is completed. 

• Banks may request KYC verification when processing changes to customer contact details. 

Following these steps can make the mobile number change in bank account process safer and more convenient. 

Why Updating Your Mobile Number Matters for Financial Services 

Your registered mobile number is important beyond everyday banking. 

It may also be used when accessing financial services, completing identity verification, receiving OTPs and managing repayment-related communication. 

For example, when applying for a personal loan online, a valid mobile number can form part of the registration and verification journey. 

With Fibe, eligible customers can access personal loans of up to ₹10 lakh, subject to applicable eligibility, verification and lender terms. 

Download the Fibe App or visit the official Fibe website to check your eligibility. 

FAQs On Changing Mobile Number in Bank Account 

1. How Many Days Does It Take to Change a Mobile Number in a Bank Account? 

The processing time depends on your bank and the method used. 

Some digital or ATM-based requests may be processed relatively quickly, while branch-based requests can take longer because of verification requirements. 

Check the confirmation or service-request timeline provided by your bank rather than assuming a standard processing period applies to every bank. 

2. Can We Change Mobile Number in Bank Account Online? 

It depends on the bank. 

Some banks offer a mobile-number change facility through Internet Banking or other digital channels, while others require customers to visit a branch. 

For example, SBI provides an Internet Banking route, while YES BANK’s current retail process directs customers to a branch. 

3. Can I Change My Bank Account Phone Number Online? 

You may be able to, if your bank provides the facility and you can complete its required authentication. 

Log in to your bank’s official Internet or mobile banking service and check Profile, Personal Details, Contact Details or Service Requests. 

If no mobile-number update option appears, contact the bank or visit the required branch. 

4. Will I Get Confirmation After the Update? 

Banks generally provide confirmation or a status update after processing a mobile-number change request. 

Depending on the bank, this may be sent through SMS, email, Internet Banking or another official communication channel. 

5. Is There Any Fee for Changing My Mobile Number? 

This depends on the bank and the service channel. 

Many banks may not charge for updating customer contact details, but you should check your bank’s current schedule of charges rather than assuming the service is universally free. 

6. What Documents Are Required to Change Mobile Number in Bank Account? 

The exact requirements vary by bank. 

For a branch request, you may need: 

• Mobile-number change form 

• Account details or Customer ID 

• Valid KYC/identity proof 

• Aadhaar, PAN or another accepted document where required 

For an online update, separate physical documents may not be required if the bank can authenticate your request digitally. 

7. Can I Change My Bank Mobile Number If I Have Lost My Old Number? 

Yes, but you may need to use an alternative verification route. 

If the old number is unavailable, contact your bank immediately. Depending on the bank, you may need to: 

• Visit a branch 

• Provide KYC/identity documents 

• Complete additional verification 

• Submit a signed request 

Do not delay the update if your old SIM has been lost, stolen or permanently deactivated. 

8. How to Change Mobile Number in Bank Account Without Visiting a Branch? 

This depends entirely on whether your bank supports a remote update process. 

Possible methods include: 

• Internet Banking 

• Mobile banking 

• ATM 

• Another bank-approved digital service 

For example, SBI offers Internet Banking and ATM routes. However, some banks still require a branch visit for retail mobile-number changes. 

Always check your bank’s official process before attempting the update. 

A crossed cheque is a cheque marked with two parallel lines, usually on the top-left corner or across the face of the cheque. It cannot be cashed directly at the bank counter and must be deposited into a bank account. This makes cheque payments safer, more traceable and less prone to misuse. 

Let’s say, if you issue a crossed cheque to a vendor, the amount will be credited to the vendor’s bank account instead of being handed over as cash to anyone presenting the cheque.  
That is why crossed cheques are commonly used for business payments, rent, supplier dues and high-value transactions. Read on to understand the concept in more depth. 

What is a Crossed Cheque? – Meaning & Definition 

A crossed cheque is a cheque that carries two parallel transverse lines on its face. These lines act as an instruction to the bank that the cheque amount should be routed through a bank account and not paid in cash over the counter. 

In simple words, crossed cheque meaning refers to a safer form of cheque payment where the money is credited to the recipient’s account. This creates a banking trail and reduces the chances of fraud, theft or unauthorised encashment. 

A crossed cheque is especially useful when the payer wants to ensure that the payment reaches the intended person or business account. 

How Does a Crossed Cheque Work? 

A crossed cheque works by restricting cash withdrawal and directing the bank to process the payment through an account. Here’s how it usually works: 

• Cheque is issued: The drawer writes the cheque with the payee’s name, amount, date and signature. 

• Crossing is marked: Two parallel lines are drawn on the cheque. Additional words such as ‘A/C Payee Only’ or ‘Not Negotiable’ may also be written. 

• Payee deposits the cheque: The recipient cannot collect cash at the counter. They must deposit the cheque into their bank account. 

• Bank verifies details: The bank checks the cheque details, signature, date, amount and crossing instructions. 

• Amount is transferred: Once processed, the money is credited to the payee’s bank account. 

• Transaction becomes traceable: Since the amount moves through bank accounts, it creates a clear record. 

• Risk of misuse reduces: Even if the cheque is lost, it is harder for an unauthorised person to cash it directly. 

Who Can Cross a Cheque? 

A cheque can be crossed by different parties involved in the transaction: 

• Drawer: The person issuing the cheque can cross it while writing it. 

• Holder: The person legally holding the cheque can cross an uncrossed cheque. 

• Payee: The recipient can add crossing to improve payment safety. 

• Banker: In certain cases, a banker may add or complete crossing instructions for collection purposes. 

• Collecting bank: If required, the bank may process the cheque according to the specific crossing mentioned. 

Types of Crossed Cheque 

There are 4 main types of crossed cheques, and each type gives a different level of payment restriction and security. 

1. General Crossed Cheque 

A general crossed cheque has two parallel lines drawn across the cheque. It may also include words such as ‘& Co.’ or ‘and company’ between the lines. 

This type of cheque cannot be cashed directly at the counter. However, it can be deposited into a bank account through any bank. It offers basic security by ensuring the money moves through the banking system. 

2. Special Crossed Cheque 

A special crossed cheque mentions the name of a specific bank between the two parallel lines. This means the cheque can be collected only through that named bank. 

For example, if ‘ABC Bank’ is written between the lines, the cheque must be processed through ABC Bank. This type of crossing adds an extra layer of control because the payment route is clearly specified. 

3. Account Payee Crossing 

An account payee crossing includes words such as ‘Account Payee,’ ‘A/C Payee’ or ‘A/C Payee Only’ between the two lines. 

This is one of the safest forms of cheque crossing because the amount should be credited only to the account of the named payee. For example, if the cheque is written in favour of ‘Rahul Sharma,’ it should be deposited into Rahul Sharma’s account only. 

4. Not Negotiable Crossing 

A not negotiable crossing includes the words ‘Not Negotiable’ between the lines. This does not mean the cheque cannot be transferred at all, but it limits the transferee’s rights. 

In simple terms, the person receiving such a cheque cannot get a better title than the person who transferred it. This helps protect the original owner in case the cheque is stolen or wrongfully transferred. 

Benefits of Using a Cross Cheque 

Cross cheques are widely used because they make payments safer and easier to track. Here are the key benefits: 

• Improved security: The cheque amount is credited to a bank account instead of being paid as cash. 

• Lower fraud risk: It becomes difficult for an unauthorised person to misuse or encash the cheque. 

• Clear transaction trail: The payment can be traced through bank records. 

• Useful for high-value payments: Crossed cheques are safer for large payments such as rent, vendor bills or business dues. 

• Better accountability: Both payer and payee can maintain proof of payment. 

• Reduced cash handling: It avoids the risks of carrying or collecting large amounts of cash. 

• Helpful in disputes: Bank records can support payment verification if any issue arises later. 

• Professional payment mode: Businesses often prefer crossed cheques for organised and documented transactions. 

Pros and Cons of a Crossed Cheque 

Pros of a Crossed Cheque	Cons of a Crossed Cheque
Reduces the risk of theft and fraud	Cannot be cashed instantly at the counter
Ensures the amount goes through a bank account	May take time to clear
Creates a clear banking record	Requires the payee to have a bank account
Safer for large payments	Not ideal when urgent cash is needed
Useful for business and vendor transactions	Errors in payee name or crossing can delay processing
Helps resolve payment disputes	Bank holidays or clearance timelines may affect access to funds

How to Cross a Cheque? 

Crossing a cheque is simple. You only need to mark the cheque correctly before handing it over to the payee. 

• Draw two parallel lines on the top-left corner or across the face of the cheque. 

• For extra safety, write ‘A/C Payee Only’ between the lines. 

• Mention the payee’s name clearly. 

• Write the amount correctly in words and numbers. 

• Add the date and sign the cheque. 

• Avoid overwriting or unclear markings. 

• Do not leave blank spaces that can be misused. 

• For special crossing, write the specific bank’s name between the lines. 

When Should You Use a Cross Cheque? 

You should use a crossed cheque when you want a safer and more traceable payment method. It is useful in situations such as: 

• Paying vendors, suppliers or service providers 

• Making rent or security deposit payments 

• Paying school, college or business fees 

• Issuing payments to someone you do not know well 

• Making high-value payments for goods or services 

• Sending money where proof of payment may be required later 

• Avoiding direct cash withdrawal by the cheque holder 

 
A crossed cheque keeps your money safer by ensuring it goes into a bank account rather than being withdrawn as cash. Whether for personal or business use, it is a practical way to make cheque payments more secure. 

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FAQs on Crossed Cheque 

1. Can a crossed cheque be cashed? 

No, a crossed cheque cannot be cashed directly at the bank counter. It must be deposited into a bank account, and the amount is credited after bank processing. 

2. What is the difference between a crossed cheque and a bearer cheque? 

A crossed cheque must be deposited into a bank account, making it safer and traceable. A bearer cheque can usually be encashed by the person who presents it at the bank, which makes it less secure. 

3. Who can cross a cheque in India? 

The drawer, holder, payee or banker can cross a cheque, depending on the situation. The drawer usually crosses it while issuing the cheque. 

4. Is a crossed cheque a negotiable instrument? 

Yes, a cheque is a negotiable instrument. However, certain crossings such as ‘Account Payee’ or ‘Not Negotiable’ restrict how it can be transferred or collected. 

5. What happens if a crossed cheque is lost? 

If a crossed cheque is lost, it is safer than an open cheque because it cannot be easily cashed at the counter. Still, you should immediately inform your bank and request a stop payment to prevent misuse. 

6. Can a crossed cheque be transferred to a third party? 

It depends on the type of crossing. A general crossed cheque may be transferable, but an account payee cheque is meant to be credited only to the named payee’s account. 

Transferring money across borders has never been easier. Whether you need to support your family, pay tuition fees or cover international expenses, there are now multiple safe and convenient ways to send money internationally. 

Read on to learn everything about what it is, what are the steps involved and how beneficial it is.

What is an International Money Transfer?

It allows you to send money from your bank account in one country to another person’s bank account in a different country. You can transfer money overseas through your bank, mobile banking app or online platforms, thanks to advancements in financial technology.

What are the Steps to Sending Money Abroad?

Step 1: Choose Your Transfer Method

You have many options for transferring money overseas:

• Bank Transfers – Directly send money from your savings account to the recipient’s bank account
• Online Platforms – Services like PayPal, Wise and Western Union allow you to send money internationally digitally
• Mobile Banking Apps – Many banks offer international money transfer options through their apps with ease

Step 2: Get Required Details

Before making a transfer, you’ll need some of the important details like:

• Recipient’s full name
• Recipient’s bank details (account number and bank name)
• SWIFT/BIC Code – Unique code that identifies the recipient’s bank
• Currency in which you want to send money abroad
• Purpose of the transfer (some banks may ask for this)

Step 3: Check Transfer Fees and Exchange Rates

International money transfer usually comes with additional costs, such as:

• Transfer Fees – A fixed fee is charged for the transaction.
• Exchange Rate Markups – Some providers offer exchange rates higher than the market rate, which increases costs.
• Receiving Fees – Some banks charge fees for receiving international transactions.

Step 4: Initiate the Transfer

Once you have all the details, you can complete the transfer through:

• Your bank’s website or mobile app.
• An online money transfer service.
• A physical visit to the bank branch. 

Step 5: Track the Transfer

After initiating the transfer, you’ll receive a confirmation number or tracking ID. You can use it to monitor your transaction and ensure it reaches the recipient successfully.

Why International Money Transfers are Beneficial?

• Fast and Secure – Modern banking technology ensures quick and safe transfers, usually within minutes or hours.
• Convenience – You can send money internationally anytime, anywhere, using digital platforms.
• Supports Multiple Currencies – International money transfer services work with various currencies, making transactions hassle-free.

Best Ways to Transfer Funds Internationally

• Bank Transfers – Safe and reliable but may have higher fees
• Online Services (Wise, PayPal, Western Union) – Very fast and sometimes cheaper alternatives to banks
• Mobile Banking Apps – Convenient for users who prefer digital banking on the go

Tips for a Smooth International Money Transfer

• Compare Providers – You should check the fees and exchange rates before choosing a transfer service.
• Double-Check Details – You need to ensure the recipient’s details (name, account number, SWIFT/BIC code) are correct to avoid delays or wrong transfers.
• Plan Transfers in Advance – If your transfer isn’t urgent, wait for better exchange rates to save money.
• Know Transfer Limits – Some banks and platforms charge daily or monthly limits on international money transfers.

Sending money abroad has become simpler and more efficient. If you are wondering how to send money to overseas, following these steps will make the process easy and hassle-free.
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FAQs on International Money Transfers

Can I send money internationally using Google Pay?

Yes, Google Pay allows international transfers through services like Wise and Western Union.

How much tax is charged when sending money from India?

For transfers above ₹7 lakh, a 5% Tax Collected at Source (TCS) is applicable under the Liberalised Remittance Scheme (LRS).

Can I keep my Indian savings account if I move abroad?

Yes, you can maintain an Indian savings account while living overseas.

How can I use my Indian bank account abroad?

You can use it for online transactions, fund transfers and other banking services.

Gone are the days when you had to travel long distances just to withdraw cash. Thanks to Micro ATMs, banking services are now more accessible, especially in rural and remote areas. These small, portable devices allow you to withdraw money, check your balance and even make transactions. You can do all of these without visiting a bank or a traditional ATM.

Interested to know what is Micro ATM and why it’s a great invention? Read on.

What is a Micro ATM?

A Micro ATM is a compact, portable device that offers basic banking services such as:

• Micro ATM cash withdrawal
• Balance enquiries
• Money transfers
• Bill payments

These devices run on mobile networks, making them ideal for places with poor connectivity. It also uses biometric authentication like fingerprint scanning, ensuring secure and hassle-free transactions. Micro ATMs are cost-effective and easy to maintain. These devices are really helpful as they enable banks to reach more people, especially in areas with limited banking infrastructure.

How to Withdraw Cash Using a Micro ATM?

Withdrawing money from a Micro ATM is simple. Here’s how it works:

• Authenticate Yourself: You can place your finger on the scanner for biometric verification. The device will check your identity against the bank’s records.
  Enter the Withdrawal Amount: Once authenticated, enter the amount you wish to withdraw.
  Transaction Processing: The Micro ATM connects to the bank’s server through a mobile network to process your request. If you have sufficient funds in your bank account, the transaction will be approved.
  Cash Issued: The cash is handed over to you, completing the Micro ATM cash withdrawal process.

Also Read: 5 Simple Ways to Block & Unblocked ATM Card

Why Micro ATMs Are a Game-Changer?

Micro ATM benefits go beyond just cash withdrawals. These devices make banking easier in so many ways.

• Expanding Banking Access

A Micro ATM brings banking services to remote areas where banks and ATMs are insufficient. Now, people no longer have to travel long distances to get cash.

• Cost-Effective for Banks

Setting up a traditional ATM is expensive but a Micro ATM requires minimal infrastructure and lower operational costs. This allows banks to expand their services without spending too much.

• Convenience for Customers

Micro ATMs are found in local shops, small businesses and even mobile banking vans. This means you can complete a Micro ATM cash withdrawal without visiting a bank or waiting in long queues.

• Promoting Financial Inclusion

By making banking services available in underserved areas, Micro ATMs help people become part of the formal financial system. This allows them to open savings accounts, make payments and transfer money with ease.

The Future of Micro ATMs in India

Micro ATMs are changing the way people access banking services. With over 2,00,000 Micro ATMs already in use across India, this number is only set to grow as banks expand their reach.

FAQs on Micro-ATM

How many Micro ATMs are there in India?

Currently, there are over 2,00,000 Micro ATMs operating across urban and rural India.

Can we withdraw money from a Micro ATM?

Yes, a Micro ATM works similar to a regular ATM. You can do a Micro ATM cash withdrawal by authenticating your identity through a fingerprint scan and the transaction completes in seconds.

Cash is still a preferred way to transact for many – whether it’s income from a business, money received as a gift or savings you’ve been setting aside over time. A cash deposit is simply the process of adding that physical currency to your bank account. Which then becomes available for withdrawals, transfers or everyday use.

But depositing cash isn’t entirely without rules. Banks in India follow RBI guidelines on cash deposits. These rules set clear limits on how much cash you can deposit at a time. They also define when you need to submit supporting documents. And if your deposits cross a certain limit, your bank is required to report it to the Income Tax Department. So, knowing these rules in advance means no surprises later.

Read and learn more about the cash deposit limits in savings accounts concerning several features, including daily and yearly limits.

Cash Deposit Limit in Savings Account Explained

A cash deposit limit is simply the maximum amount of cash you’re allowed to deposit into your savings account within a given time period – per day or per financial year.

These limits exist for good reason. They help banks and regulators keep an eye on large or unusual cash movements, which can sometimes be linked to tax evasion or money laundering. Staying within these limits keeps your transactions clean and hassle-free. Cross them and you may need to explain where the money came from.

Basically, this limit isn’t there to stop you from using your own money. It’s there to make sure the financial system stays transparent for everyone.

Cash Deposit Limit in Savings Account Per Day in 2026

According to RBI rules, you can deposit up to ₹50,000 without providing your PAN details. A cash deposit above ₹50,000 requires your PAN details or the PAN should be linked to your bank account.

Cash Deposit Limit in Savings Account Yearly

Here’s how the annual cash deposit limit works:

• Step 1: The annual cash deposit limit for a savings account is ₹10 lakh per financial year.
• Step 2: If your total cash deposits cross ₹10 lakh in a year, your bank is required to report this to the Income Tax Department.
• Step 3: Once flagged, the Income Tax Department may send you a notice asking you to explain the source of the funds.
• Step 4: You’ll need to provide documents that justify where the money came from – salary slips, sale proceeds, gifts or any other legitimate source.
• Step 5: If you can’t explain the source satisfactorily, it could lead to tax scrutiny or penalties.

The key takeaway -Depositing large amounts isn’t illegal – but you need to be able to back it up with a paper trail.

Tax Rules for Cash Deposits Above ₹10 Lakhs

Depositing more than the allowed cash limit may attract the attention of the Income Tax Department. Section 269ST of the Income Tax Act also restricts any person from accepting ₹2 lakhs or more in cash from a single person in a day, in a single transaction or across multiple linked transactions. Here’s what you need to keep in mind:

• If you deposit more than ₹10 lakhs in cash in your savings account in a year, it gets reported to the Income Tax Department.
• You’ll need to provide your PAN for such deposits.
• Too many large cash deposits might lead to a tax notice.
• Banks are required to inform the government about these big transactions.

[Source: Cash Deposit Rules – RBI]
[Source: Cash acceptance limit – ClearTax]

Best Practices for Managing Cash Deposits

A little awareness goes a long way when it comes to cash deposits. Here are some simple habits worth following:

• Stay within the annual limit: Try to keep your total cash deposits under ₹10 lakhs in a financial year. It keeps things clean and avoids any unwanted attention.
• Always share your PAN when needed: If you’re depositing more than ₹50,000, have your PAN ready. It’s a small step that keeps your transaction transparent.
• Go digital for big amounts: For large transfers, bank transfers, cheques or UPI are much smoother options. They’re not subject to the same cash deposit rules and leave a clear trail.
• Keep your records handy: Hold on to any documents that show where your money came from – salary slips, sale receipts. If questions ever come up, these can act as justifications and proof. 

Cash deposits are important to maintain a minimum balance in some cases. Staying informed helps you manage money wisely and avoid penalties. If you fall short of funds, Fibe is here to help! 

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FAQs On Cash Deposit Limits in Savings Accounts

1. How often can you deposit large amounts of cash?

There’s no set limit on how many times you can deposit large amounts – as long as each deposit stays within your bank’s daily and yearly thresholds. Just keep in mind that very frequent large deposits can prompt your bank to ask for supporting documents. 

2. Are there restrictions on deposit frequency?

It depends on your bank and account type. Some are flexible, others have stricter internal caps. Best to check with your bank once so you’re not caught off guard at the counter.

3. How much cash can I deposit in my bank account?

You can deposit up to ₹50,000 in one go – no PAN needed. Above that, PAN is mandatory. And if your total cash deposits in a year cross ₹10 lakh, your bank will report it to the Income Tax Department. Keeping proof of income can be helpful in such cases. 

4. What are the new rules for cash deposits?

Here’s what currently applies:

• Cash deposits above ₹50,000 require your PAN
• Total yearly deposits above ₹10 lakh get reported to the Income Tax Department
• Under Section 269ST, accepting ₹2 lakh or more in cash from one person in a single day or transaction isn’t allowed
• Unusual cash activity triggers a Suspicious Transaction Report from your bank

Same rules, same limits – regardless of which bank you’re with.

The banking world is always changing and the term ‘bad bank’ has gained serious importance, especially during financial crises. But what exactly is a bad bank and how does it work? A bad bank is a financial institution set up to take over and manage non-performing assets (NPAs) or bad loans from struggling banks. Simply put, it helps manage bad loans and stabilise the economy. 

Read on to understand its meaning and how it functions with a special focus on bad banks in India.

Bad Bank Meaning

A Bad Bank is an institution formed to buy and take care of assets from another bank storing non-performing assets like bad loans. Here, a bad loan means the money borrowed but not repaid on time, making it hard for banks to recover. Bad banks separate bad loans from good ones, helping regular banks focus on their main work. This cleans up their balance sheets and improves financial health. It also plays a very crucial role in stabilising the economy, preventing banking collapses and restoring confidence in the financial system.

How Bad Bank Works

The mechanism of how a Bad Bank works involves several key steps:

• Identification of Bad Assets: 

Assets identified as non-performing include watching and classifying them by banks. These loans and advances do not generate any income; they will not be realised.

• Transfer of Assets: 

The holding bank moves bad loans to the bad bank, usually at a lower value, considering risks and recovery chances.

• Management of Bad Assets: 

Bad banks manage these assets by restructuring the loan, asset sale or legal actions for recovery.

• Recapitalisation: 

The original bank may be financially supported through recapitalisation to strengthen its balance sheet and resume normal lending activities as it is freed of bad assets.

Bad Bank Examples

Many countries have implemented the bad bank concept with varying degrees of success. A few bad bank examples include:

1. USA: 

The Troubled Asset Relief Program (TARP) was initiated during the financial crisis of 2008 to buy up toxic assets from banks and stabilise the financial system.

2. Ireland: 

The National Asset Management Agency (NAMA) was formed in 2009 to manage the toxic assets of Irish banks as a political measure out of the country’s banking crisis.

3. Germany: 

Initiatives such as FMS Wertmanagement to have a bad bank appropriate to the timeframe and then later manage the non-performing assets of German banks within the financial storm.

Bad Bank in India

Recently, ‘bad banking’ has become a major concern in India, with rising bad loans affecting the banking sector. The government and RBI are now exploring structured solutions to manage this growing issue.

1. Creation of the National Asset Reconstruction Company Limited (NARCL): 

Announced in 2021, NARCL, also called the ‘bad bank’, was established to take over and manage the NPAs of Indian banks. This initiative aims to clean up the balance sheets of public sector banks and improve their financial health.

2. Functions of NARCL:

NARCL will buy bad loans from banks on a discount grab and manage recovery. Restructuring, resolving and selling assets would also maximise recovery while minimising losses.

3. Impact on the Indian Banking Sector: 

A bad bank in India could help revive the banking sector, clear bad loans and boost fresh lending to restart economic growth.

Bad banks help clean up bad loans and revive the banking sector, making lending smoother. At Fibe, we ensure easy access to credit with instant cash up to ₹5 lakhs and hassle-free EMIs, keeping repayments stress-free.

FAQs on Bad Banking

How do banks sell bad loans?

Banks sell their non-performing assets to asset reconstruction companies (ARCs) or bad banks at discounted prices. The ownership of the loan is transferred to the purchasing entity, which is responsible for recovering dues.

Why are Bad Banks created?

Such banks are created to contain and manage non-performing assets, improving the health of original banks. They will help banks focus on their core functions instead of on bad loans, making the banking system more stable.

Which is the first bad bank in India?

The first bad bank established in India is the National Asset Reconstruction Company Limited (NARCL), founded in 2021 to solve the problem of non-performing assets in the Indian banking industry.

If I send money to wrong account, can I get it back? It’s a common worry in today’s world of fast digital payments. One small error, and suddenly the amount transferred to wrong account becomes a stressful situation. But don’t worry, there are ways to fix it. The key is to act quickly. Contact your bank, raise a complaint and track the status. This step-by-step guide shows you exactly how to retrieve money sent to wrong account. 

Read on to find out the steps to take and the precautions to follow.

Understanding a Wrong Account Money Transfer

• Why it happens: Small errors can lead to an amount transferred to wrong account. It usually happens when you enter incorrect details. Could be the wrong account number, IFSC code, UPI ID or even mobile number.
• Why it matters: It can be stressful, especially if a large amount is involved.
• What to do: The moment you notice the mistake, don’t wait. Reach out to your bank or payment app right away and report it.
• Why speed helps: Acting quickly can make a big difference. The earlier you report it, the higher your chances of getting the money back.

Steps to Take If You Transferred Money to the Wrong Account

Here are the steps you should follow to handle the wrong transaction effectively:

1. Check the Transaction Details

You can go through your transaction details once. Sometimes, if the details are incorrect, the transaction might fail automatically. In such cases, the money could be refunded to your bank account.

Look for the details below:

• Account number
• IFSC code
• Beneficiary name
• Transaction ID and amount

2. Contact Your Bank Immediately

If the transaction is done successfully, inform your bank as soon as possible. Banks have a grievance redressal system to handle such cases. Share the details below with them for reference:

• Transaction ID
• Date and time
• Recipient’s account number
• Amount transferred to the wrong account

After that, your bank may reach out to the recipient’s bank to block the money or request a reversal.

3. Notify the Recipient’s Bank

If the money has already been credited to another account, you can also contact the recipient’s bank directly. Provide the exact transaction details and ask them to assist in recovering your funds.

What Should You Do in Case of NEFT to the Wrong Account?

NEFT works in settlement batches, which means the money doesn’t move instantly. This gives you a small window to act – but you still need to be quick. Here’s what you should do:

• Contact your bank immediately: Don’t wait. Call the customer care number or visit the branch and raise a formal complaint. Make sure you get a complaint or ticket number – this is important for follow-up.
• Share all transaction details: Provide the UTR (Unique Transaction Reference) number, the amount, date and time of transfer. Also, provide the account details you had entered.
• Ask your bank to initiate a reversal request: Your bank will reach out to the beneficiary’s bank and request a recall of the funds. This is a coordination process and usually requires the recipient’s cooperation.
• Follow up regularly: NEFT reversals are not instant. Keep checking with your bank every few days and document all your communication.

One important thing to know: RBI has introduced a beneficiary name look-up feature for NEFT transactions, which lets senders verify the account holder’s name before confirming a transfer. If your bank offers this, always use it. It’s a simple step that can save you a lot of stress.

[Source: NEFT to the wrong account – RBI Guidelines]

What Should You Do in Case of RTGS to the Wrong Account?

RTGS or Real Time Gross Settlement, is used for high-value transfers. As the name suggests, these transactions settle in real time, which means the money moves almost immediately. Once settled, it is treated as final. There is no automatic rollback option. This makes RTGS one of the trickier cases when it comes to wrong transfers. But that doesn’t mean you’re out of options. Here’s what you can do:

• Report to your bank immediately: Time is critical here. The moment you realise the mistake, call your bank and raise a complaint. Ask them to flag the transaction and initiate a reversal request with the beneficiary’s bank.
• Provide complete details: Share the UTR number, amount, date and time and the incorrect account details you had entered. The more information you give, the smoother the process.
• Try contacting the recipient if possible: A polite request for a voluntary return can speed things up significantly. 
• Escalate if needed. If the bank is slow to respond or the beneficiary refuses to return the funds, you can escalate to RBI’s Complaint Management System (CMS) through the Integrated Ombudsman portal.

[Source: RTGS to the wrong account – RBI Guidelines]

What If the Transaction Is ‘Pending,’ ‘Processing,’ or ’Debited but Not Received’?

This is actually one of the more common situations people find themselves in and the good news is it’s usually easier to resolve.

• First, give it a little time: Some transactions can show a delay of a few hours before they complete or reverse. UPI transfers that time out are usually auto-reversed within 24 to 48 hours. So don’t panic immediately – re-check your bank statement and app after a short wait.
• If it’s still unresolved, raise a complaint: Contact your bank’s customer care or use the complaint section in your payment app. Mention that the amount has been debited but not received and share the transaction reference number, date and amount.

What to expect: RBI has a framework that defines turnaround times (TAT) for resolving failed or delayed digital transactions. Banks are expected to resolve these within set timelines. 

[Source: TAT for failed transactions – RBI]

Legal Framework If Wrong Beneficiary Refuses to Return the Amount

If I transferred money to wrong account and the recipient refuses to return it, things can get tricky. The bank can’t reverse the amount without the other person’s consent.

Here’s what you can do in such cases:

• Explain the issue clearly: Contact your bank and share full details of the transfer. Include transaction ID, time and account information. Email works best as it gives you a written record of your complaint.
• Send details to both banks: Share the same details with the beneficiary’s bank. In some cases, banks may try to reach out on your behalf.
• Seek legal advice: If the person still refuses to return the amount, you can explore legal options. A lawyer can help you send a formal notice. 

If the person agrees to return the money, the reversal usually takes about 8 to 10 working days. But if they don’t, recovery would not be possible. 

Prevention is Better Than Cure

Avoiding these mistakes is always the best approach. Here are some ways to prevent wrong transfers:

• Always double-check details: You should always verify the account number, account holder’s name and IFSC code before sending money. A small typo can lead to a money transfer to the wrong account number.
• Use saved beneficiaries: For frequent transactions, save the beneficiary details in your banking app. This will reduce the chances of making an error when transferring money.
• Enable notifications: Enable the transaction alerts and notifications option to monitor payments in real time. If you see an error, you can immediately fix it.

Transferring money to another account by mistake is unpleasant. But you can get your cash back by taking the correct measures and acting fast. It is advisable to cross-check your details to prevent mistakes and keep a record of your transactions. 

FAQs on Money Transfer to the Wrong Account

1. Can banks recover money sent to the wrong account?

Yes, banks can help reclaim money sent to the wrong account. Usually, they consult with the recipient’s bank to block the money and ensure it is returned. However, recovery depends on some factors, such as whether the recipient agreed to repay the amount or whether the amount has already been expended.

2. How do I complain about a wrong bank transaction?

You can visit your bank, call customer service or use the bank’s online complaint system. Provide transaction details like the transaction ID, amount, date and the wrong account number to file your complaint.

3. Can I get my money back if I send money to wrong account? 

Yes, you can, but only if you act fast. If I send money to wrong account, the first step is to contact the bank and raise a complaint. The bank will try to reverse the transaction with the help of the recipient’s bank. If the recipient agrees, the amount can be recovered.

4. Is RTGS reversible after settlement?

Not really. Once an RTGS transaction goes through, it’s considered final. That said, if you spot a mistake, reach out to your bank right away. They can try to help, but getting the money back usually depends on the recipient agreeing to return it.

5. What details are mandatory to file a complaint?

When you raise a complaint, your bank will ask for a few basic details. This usually includes the transaction ID or UTR number, the amount, date and time of transfer and the account details you entered. Sharing these upfront helps speed things up.

6. What happens if I enter the wrong UPI PIN?

If you enter the wrong UPI PIN, the payment won’t go through. After a few wrong attempts, your UPI access may get temporarily blocked for safety reasons. You can try again after some time or reset your PIN if needed.

You can link your mobile number to your bank account online in under 5 minutes through net banking, your bank’s mobile app or an ATM without visiting a branch. This guide covers all 4 methods, includes a ready-to-use application letter, tells you how to check whether your number is already linked and explains why RBI KYC rules make this mandatory for every account holder. 

To link your mobile number with your bank account online, log in to your bank’s net banking portal or mobile app, head to ‘Profile’ or ‘Contact Details’, enter the new number and verify it with an OTP. Done. The whole thing takes under 5 minutes and you never have to leave your house. Prefer doing it offline? You can walk up to any ATM with your debit card or visit your branch with a KYC form, both work just as well. 

That said, this is not just a convenience update. The Reserve Bank of India (RBI) mandates a registered, active mobile number for every bank account as part of KYC (Know Your Customer) compliance. Banks can and do restrict net banking access, block UPI registration and even freeze transaction limits on accounts where no valid number is linked. Beyond compliance, your registered mobile number is the backbone of every OTP-based payment, every fraud alert and every UPI transfer you make. 

DID YOU KNOW? 

NPCI data shows UPI processed over 17 billion transactions in a single month in 2024. Every single one of those transactions requires a bank-registered mobile number without it, there is no UPI ID, no PhonePe, no GPay, no BHIM. (Source: NPCI, 2024) 

Why is It Important to Link Your Mobile Number to Your Bank Account? 

Here is a breakdown of what a registered mobile number actually unlocks for you and what you lose without one: 

Reason	What It Means for You
Better Security	Every debit, credit and login triggers an instant SMS — you catch unauthorised activity the moment it happens, not days later on a statement.
OTP-Based Authentication	Net banking logins, card payments online and NEFT/IMPS transfers all depend on OTPs sent to your registered number. No number = no OTP = transaction blocked.
Access to Digital Services	Mobile banking apps, e-statements, cheque book requests and balance enquiries all require a verified mobile number to work.
Required for UPI Registration	NPCI rules require your bank-registered number to match the active SIM in your phone when setting up a UPI ID. Without this, apps like PhonePe, GPay and BHIM simply will not let you register.
RBI/KYC Compliance	The RBI requires a valid linked number under KYC norms. Non-compliant accounts risk transaction limits, net banking blocks or account freezes.
Fraud Prevention	Real-time alerts are your first line of defence. When someone tried to do an ₹80,000 RTGS transfer from Meera’s account in Bengaluru without her knowledge, the instant SMS alert she got on her registered number let her block it within minutes by calling customer care.

Here’s a situation that plays out more often than people realise:  
 
Neel, a software professional in Pune, switched SIM operators in late 2023. He got a new SIM on the same number – all good, he thought. But his bank had the old SIM’s carrier-linked number on record from when he opened the account years earlier and that was a different number altogether.  
 
3 months later, when he tried to approve a ₹45,000 course fee payment via NEFT, the OTP went to an inactive number he had not used in years. The transaction failed, the deadline was tight and he had to make an emergency branch visit to sort it out. Keeping your registered number current is not admin, it is protection. 

How to Link Mobile Number with Bank Account? 

There are 4 ways to get this done – 3 of them require no branch visit at all. Pick the one that fits your situation.  

PRO TIP: If you have active net banking or your bank’s official app on your phone, use Method 1 or 2 – they are the fastest and require zero travel. Only go to the branch (Method 4) if you have completely lost access to your old registered number and cannot receive OTPs. 

Method 1: Net Banking Portal 

Every major bank like SBI, HDFC, ICICI, Axis, Kotak and others, lets you update your mobile number through their internet banking dashboard. This is the most direct way. 

1. Log in to your bank’s net banking portal using your customer ID and password. 

2. Look for ‘My Profile’, ‘Settings’ or ‘Manage Contact Details’ in the top navigation. 

3. Click ‘Update Mobile Number’ or ‘Change Registered Mobile Number’. 

4. Type in your new 10-digit mobile number and re-enter it to confirm. 

5. An OTP will arrive on either your old or new number depending on your bank. Enter it within the time limit. 

6. Once verified, you will see a success message and receive a confirmation SMS within a few hours. 

Method 2: Mobile Banking App 

If you bank on your phone – YONO (SBI), HDFC MobileBanking, iMobile Pay (ICICI) or similar – the update is just a few taps away. 

7. Open your bank’s official app and sign in with your MPIN or biometric. 

8. Go to ‘Profile’, ‘Account Settings’ or ‘Personal Details’ from the home screen. 

9. Tap ‘Update Mobile Number’ or ‘Edit Contact Info’. 

10. Enter your new number and submit. 

11. Verify the change via OTP or app password. 

12. The app confirms the update on screen. You will also receive an SMS once it goes live. 

Method 3: ATM 

Banks like SBI and PNB allow mobile number updates directly at ATMs. This works well if you want to avoid logging in to net banking but still don’t want to visit a branch. 

13. Insert your debit card and enter your PIN at your bank’s ATM. 

14. From the main menu, choose ‘Services’ or ‘Registration’ – not ‘Withdraw Cash’. 

15. Select ‘Mobile Number Registration’ or ‘Update Mobile Number’. 

16. Key in your new 10-digit mobile number and confirm it. 

17. An OTP will be sent to the new number – enter it at the terminal to complete the update. 

18. Take the printed slip as proof of your request. The update typically reflects within 24 hours. 

Method 4: Visiting Your Bank Branch 

If you’ve lost your old number entirely and can’t receive OTPs for online verification, this is the most reliable route. Priya, a Delhi-based teacher, had to use this method after her phone was stolen. She walked into her branch with her Aadhaar, submitted a KYC form with her new number and had it updated within 2 working days. It wasn’t instant, but it worked without any fuss. 

19. Go to your nearest bank branch with your passbook or a note of your account number. 

20. At the enquiry counter, ask for a ‘Mobile Number Change Form’ or ‘KYC Update Form’. 

21. Fill in your account number, old registered number (if you remember it) and your new mobile number. 

22. Attach a self-attested photocopy of a valid photo ID – Aadhaar, PAN or Voter ID all work. 

23. Submit the form to the bank representative, who may verify your identity in person. 

24. The update is usually processed within 1 to 2 working days. You will receive an SMS confirmation once done. 

Method	Time Needed	Branch Visit?	Best For
Net Banking	2–5 minutes	No	Anyone with active net banking credentials
Mobile Banking App	2–5 minutes	No	Smartphone users who bank via app
ATM	5–10 minutes	ATM only	Users without internet access at home
Bank Branch	20–30 min + 1–2 days processing	Yes	Lost access to old registered number

Sample Application to Link Mobile Number with Bank Account 

Some banks – particularly for branch submissions or email requests – ask for a written application. Here is a template you can use directly. Just fill in the parts in brackets before submitting. 

—————————————————————————————— 

Date: [DD/MM/YYYY] 

The Branch Manager, [Bank Name], [Branch Name & Address] 

Subject: Request to Link / Update Registered Mobile Number – Account No. [XXXX] 

Dear Sir/Madam, 

I, [Your Full Name], hold a savings/current account with your branch bearing Account Number [XXXXXXXXXXXX]. I am writing to request that my registered mobile number be updated as detailed below: 

Current Registered Number: [Old Number / No longer accessible] New Mobile Number to be Linked: [New 10-digit Mobile Number] 

The new number is currently active and registered in my name. I have enclosed a self-attested copy of my [Aadhaar Card / PAN Card / Voter ID] for identity verification. 

I request you to process this at the earliest and send me an SMS confirmation once the update is complete. 

Yours sincerely, [Your Full Name] [Signature] [Account Number] [Date] 

—————————————————————————————— 

PRO TIP 

PRO TIP: Call your branch’s direct number before visiting to ask if they accept this form over email. Several banks do, which saves you the trip entirely. Always keep a scanned copy of the submitted form and the bank’s acknowledgement for your records. 

How to Check If Your Mobile Number Is Linked to Bank Account 

Not sure which number is currently registered with your bank? You’re not alone – a lot of people find out only when a transaction fails. Here are 3 ways to check before that happens. 

Via Net Banking 

25. Log in to your bank’s net banking portal. 

26. Go to ‘My Profile’ or ‘Account Details’. 

27. The registered mobile number will appear under ‘Contact Information’ – usually partially masked for security (e.g., XXXXXX7890). 

Via Mobile Banking App 

28. Open your bank’s official app and log in. 

29. Tap ‘Profile’ or ‘Settings’. 

30. Your registered number appears under ‘Personal Details’ or ‘Contact Details’. 

Via Customer Care or Branch 

31. Call your bank’s toll-free helpline – SBI: 1800-11-2211, HDFC: 1800-202-6161, ICICI: 1800-10-20-10. 

32. Complete the IVR identity verification (typically account number + date of birth). 

33. Ask the agent to confirm the registered mobile number on your account. 

34. Alternatively, visit the branch with your passbook and any valid photo ID – the counter staff can pull this up in seconds. 

WATCH OUT: If the number showing in your profile is one you no longer use – an old SIM, a number you ported away from or one that expired – update it now. An inactive registered number will block all OTP-based transactions and can lock you out of net banking entirely. 

Things to Keep in Mind When Linking Your Mobile Number 

1. Only link a number that is active and registered in your own name. Using a spouse’s or parent’s number creates complications during identity verification and OTP-based transactions. 

2. Stick to official bank channels – net banking portal, mobile app, ATM or the branch. Never respond to calls or messages from someone claiming to update your number on your behalf; that is a classic SIM-swap scam. 

3. After submitting an update, wait for the bank’s confirmation SMS before attempting any transaction that needs an OTP. Some banks take up to 24 hours to activate the new number. 

4. If you have just ported your number to a new telecom operator but kept the same number, you do not need to update your bank. The number itself has not changed – only the carrier has. 

5. NRI account holders usually need to visit a branch or submit notarised documents for a mobile number update. Check with your specific bank for the exact requirements. 

6. If anything goes wrong or the update does not reflect within the stated timeframe, call the bank’s official customer care – not third-party numbers you find via a quick web search. 

Benefits of Linking Your Mobile Number to Bank Account 

Benefit	How It Helps You
Instant Transaction Alerts	Every debit and credit triggers an SMS in real time. If ₹3,000 leaves your account and you didn’t authorise it, you know immediately.
Fraud Detection	Vijay, a small business owner in Hyderabad, spotted a fraudulent ₹12,000 ATM withdrawal at 2 AM because of an instant SMS alert. He blocked his card before a second withdrawal could be made.
OTP Security	Two-factor authentication via OTP is what separates a logged-in session from an authorised transaction. It is your strongest layer of digital protection.
UPI Payments	Register on GPay, PhonePe, BHIM, Paytm and every other UPI app using the same bank-linked number. All your UPI activity flows through this single verified identity.
Easy Account Management	Check mini-statements, download e-statements, request cheque books and update personal details – all without setting foot in a branch.
KYC Compliance	Stays in line with RBI KYC norms. No last-minute scramble if your bank sends a KYC update notice.

Linking your mobile number takes about 5 minutes. Not doing it or letting an outdated number sit there can cost you access to your own money at the worst possible time. Whether you use net banking, your bank’s app, an ATM or go to the branch, the process is the same: a few fields, one OTP and you are done. 

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FAQs on Linking Mobile Number with Bank Account 

1. How to link mobile number with bank account online? 

Log in to your bank’s net banking portal or official mobile app, navigate to ‘Profile’ or ‘Contact Details’, select ‘Update Mobile Number’, enter the new number and verify it with an OTP. The whole process takes under 5 minutes. If you’d rather not use the internet, you can also do it at your bank’s ATM or by submitting a KYC form at your branch. 

2. Can I change my bank account phone number online? 

Yes, most major banks including SBI, HDFC, ICICI, Axis and Kotak allow you to change your registered phone number through their net banking portal or official mobile app. You will need your account login credentials and access to a valid number for OTP verification. The update usually reflects within a few hours. 

3. How to write an application to link mobile number with bank account? 

Address the letter to the Branch Manager of your bank. Include your full name, account number, old registered mobile number (if available) and the new number you want linked. Mention that the new number is active and in your name, attach a self-attested photo ID copy and sign the letter. A complete ready-to-use template is available in this article under the ‘Sample Application’ section above. 

4. Can I link my mobile number with bank account without visiting the branch? 

Yes, in most cases. If you have net banking access or your bank’s official mobile app, you can update your number entirely online — no branch visit needed. The ATM method also works without a branch visit. The only situation that requires a branch trip is when you have lost access to your old registered number and cannot receive OTPs to verify the change online. 

5. How long does it take to link a mobile number to a bank account? 

Through net banking or a mobile app, the update is usually instant or takes a few hours at most. ATM requests typically process within 24 hours. A branch form submission can take 1 to 2 working days. In all cases, the bank will send you a confirmation SMS once the new number is active on the account. 

6. Can I link multiple bank accounts to one mobile number? 

Yes. The same mobile number can be the registered number across multiple bank accounts — each account will send its alerts and OTPs independently to that number. For UPI, one mobile number can be linked to multiple bank accounts through the same app, and you pick the active account each time you transact. 

7. How do I check which mobile number is linked to my bank account? 

The quickest way is through your bank’s net banking portal or mobile app — go to ‘Profile’ or ‘Contact Details’ and the registered number will be displayed, usually partially masked. You can also call your bank’s customer care helpline, verify your identity via IVR and ask the agent to confirm the number. Visiting the branch with your passbook and a photo ID gives you the same information in person. 

8. Is it mandatory to link a mobile number with a bank account? 

Yes. The RBI requires a linked mobile number under KYC guidelines for all bank account holders. Banks may restrict online transactions, suspend net banking access or flag accounts for freezing if no valid registered number is on file. A linked number is also a mandatory requirement for UPI registration under NPCI rules.