Beneficiary

byPaytm Editorial TeamLast Updated: August 19, 2025

Meaning

A Beneficiary is the person or entity who receives money or benefits from a transaction, insurance, or legal arrangement.

In Banking

In digital transfers, the beneficiary is the account holder who receives the funds. Their details must be added correctly to ensure safe transfers.

Benefits

  • Ensures accurate money transfers
  • Protects rightful receivers
  • Commonly used in banking, insurance, and legal systems

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