Electronic Fund Transfer

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Electronic Funds Transfer (EFT) is a system whereby anyone who wants to make payment to another person / company etc. can approach his bank and make cash payment or give instructions / authorisation to transfer funds directly from his own account to the bank account of the receiver / beneficiary.

Contents

What details are required to complete an EFT?

Complete details such as the receiver’s name, bank account number, account type (savings or current account), bank name, city, branch name etc should be furnished to the bank at the time of requesting for such transfers so that the amount reaches the beneficiaries’ account correctly and faster.

Who is the provider for EFT services in India?

RBI is the service provider for EFT.

How long does it take to transfer funds through EFT?

Funds transfer normally takes place on the same day or at the most the next working day depending upon the time of requesting / effecting such funds transfers.

Charges for transferring funds through EFT

The banks generally charge

  • some processing charges for EFT just as in the case of other services like demand drafts, pay orders, etc.
  • The actual charges depend upon the amount and the banker-customer relationship.
  • RBI has waived all its charges on EFT that were being recovered from the banks for processing such funds transfer transactions at the clearing houses run by RBI. This has certainly reduced the processing cost for the banks also.

EFT Coverage?

As of now, EFT facility is available for transfer of funds between bank branches in about 15 major cities and towns across the country.

Limit on the amount of individual transaction?

There is no value limit for individual transactions.

List of banks in India participating in EFT


Resources


Related Links for Banking in India