The Electronic Funds Transfer (EFT) System is an inter-city, intra-city and inter-bank money transfer service i.e. any bank branch to any other bank branch from one city to another city.

• EFT is 100% electronic.  Thus, it is more speedy and error-free than the slow, paper-based Demand Draft system.

• EFT also scores over Demand Draft (DD), Mail Transfer (MT), Telegraphic Transfer (TT) between account holders of the same bank.  Telegraphic Transfer between account holders of different banks involves extensive paperwork.

• EFT is an inter-bank, intra-bank and inter-city, intra-city system.  Even account holders of different banks can transfer funds without elaborate paperwork and procedures.

• EFT transaction takes place within 24 hours.  If the remitting bank transmits the funds transfer message to RBI by 3.30 p.m. on Day 1, the beneficiary’s account would be credited on Day-2 (or the next working day) by noon.

• A maximum amount of Rs. 2 crores per transaction is permitted for funds transfer.  A remitter may however, apply for more than one transaction in a day.

Funds are transferred within 24 hours.  Delays and paperwork are avoided

Frauds in processing paper instruments are avoided

Facilitates funds transfer from account to account with built-in security measures.  Control practices, computerization of control records and detailed procedural guidelines make the system absolutely secure

Beneficiary need not go to the bank.  Amount is credited to his bank account directly.