National Electronic Funds Transfer (NEFT) is a widely used payment system in India that enables seamless fund transfers. However, sometimes transactions fail due to various reasons. To help financial institutions and individuals understand the reasons for failed transactions, NEFT return codes are assigned.
NEFT return codes serve as diagnostic tools to identify the cause of failed transactions. These codes assist both banks and customers in taking corrective measures for successful fund transfers.
Common NEFT Return Codes and Their Meanings
R 01: Insufficient Funds
This code indicates that the sender’s account lacks the required balance to complete the transaction.
Example: Raj attempted to transfer ₹50,000 to his friend’s account via NEFT, but his account had only ₹45,000. As a result, the transaction was declined. He needs to deposit an additional ₹5,000 to proceed.
R 02: Account Closed
This code signifies that the recipient’s account is no longer active.
Example: Meera transferred ₹20,000 to her daughter’s account, unaware that it had been closed. The transaction failed, and she was advised to use an active account.
R 03: No Such Account
This code appears when the provided account number does not exist.
Example: Arun entered an incorrect account number while sending ₹10,000 to a supplier. The bank returned the transaction due to an invalid account.
R 04: Invalid Account Number
The account number format is incorrect, causing the transaction to fail.
Example: Priya mistakenly entered a non-existent account number while transferring ₹15,000 to her landlord. As a result, the transaction was rejected.
R 05: Unauthorized Debit Entry – Invalid Account Number Structure
This code indicates an unauthorized debit attempt or incorrect account number format.
Example: Sameer provided an improperly structured account number, leading to the failure of his NEFT transaction.
R 06: Return as per ODFI’s Request
The originating bank (ODFI) has requested a transaction reversal.
Example: A company accidentally made a duplicate NEFT payment and requested a reversal.
R 07: Authorization Revoked by Customer
The sender canceled the transaction after authorization.
Example: Amit authorized an NEFT payment but later revoked it, causing the reversal of the transaction.
R 08: Payment Stopped
The sender requested to halt the transaction.
Example: After placing an order online, Rahul noticed an issue and requested his bank to stop the payment.
R 09: Uncollected Funds
The sender’s balance does not cover the transfer amount.
Example: A business owner attempted a large transfer, but due to insufficient funds, the NEFT transaction failed.
R 10: Advises Not Authorized
The transaction does not comply with the recipient’s authorization terms.
Example: A company’s NEFT payment was declined as it did not meet the vendor’s authorization conditions.
R 11: Entry Not in Accordance with RDFI Terms
The transaction does not align with the Receiving Depository Financial Institution’s authorization.
Example: Neha set up a recurring NEFT transfer, but an unauthorized transaction triggered the R 11 code.
R 12: NRI Account Restriction
NRI accounts cannot receive NEFT transfers; foreign exchange is required.
Example: An NRI attempted to transfer funds via NEFT but was advised to use a foreign exchange service instead.
R 13: RDFI Not Qualified
The recipient’s bank is not eligible for NEFT transactions.
Example: A small credit union was unable to process an NEFT payment due to non-participation in ACH.
R 14: Representative Payee Deceased
The payee receiving funds on behalf of another person has passed away.
Example: A government agency sent payments to a deceased representative, triggering an R 14 return code.
R 15: Beneficiary or Account Holder Deceased
The account holder has passed away, making the transaction invalid.
Example: Raj unknowingly attempted to send funds to his late uncle’s account, causing a transaction failure.
R 16: Account Frozen
The account is under restriction and cannot receive funds.
Example: A legal dispute led to a freeze on ABC Corporation’s account, preventing an NEFT transaction.
R 18: Improper Effective Entry Date
The transaction’s effective date exceeds the permitted range.
Example: Amit scheduled a transfer beyond the bank’s processing window, leading to a rejection.
R 20: Non-Transaction Account
The account is not designated for transactions.
Example: NEFT transfer failed because funds were sent from a fixed deposit account.
R 21: Invalid Company Identification
The business ID provided is incorrect.
Example: A company’s NEFT transfer was declined due to an invalid identification number.
R 22: Invalid Individual ID Number
The recipient’s ID number is incorrect.
Example: Rahul entered his friend’s ID number incorrectly, leading to an R 22 return code.
R 23: Credit Entry Refused by Receiver
The recipient has declined the payment.
Example: An online merchant refused a customer’s NEFT payment due to incorrect amount discrepancies.
R 24: Duplicate Entry
The transaction matches another previously submitted transaction.
Example: A company accidentally submitted duplicate salary payments, triggering an R 24 return code.
R 29: Corporate Customer Advises Not Authorized
A business disputes the authorization of the transaction.
Example: A vendor claimed a corporation’s NEFT payment was unauthorized, resulting in an R 29 return code.
R 31: Permissible Return Entry
The transaction was reversed within legal limits.
Example: A bank processed a permissible return entry at the customer’s request, marking it with an R 31 code.
R 33: Return of XCK Entry
An excessive or incorrect transaction was identified.
Example: A bank detected an irregular NEFT transaction and returned it under the R 33 code.
Conclusion
NEFT return codes play a crucial role in identifying and resolving transaction failures. Understanding these codes can help individuals and businesses take the necessary corrective steps to ensure successful transfers. By being aware of these return codes, users can efficiently navigate NEFT transactions and avoid common pitfalls.