Eft and Seft in India

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Electronic Fund Transer and Special Electronic Fund Transfer Facility of Reserve Bank of India

I. Electronic Fund Transfer

Reserve Bank of India (RBI) facilitates Electronic Fund Transfer (EFT) across the 15 cities, where RBI manages the clearing centers. A list of these 15 cities are given in the annexure. The EFT clearing operates three times in a day at 12.00, 14.00 and 16.00 hrs. The EFT process flow has been schematically presented below:

In case of EFT, while RBI assurance is that the funds have to be credited by the third working day, in practice it takes around five days for the credit to be effected in the beneficiary’s account. This is on account of the fact that in EFT the branches need not be networked, as a result the information flows in a physical manner to the concerned branch.

The value of each EFT transaction can be in whole rupees only and cannot exceed Rs. 2 crores. A service charge of Rs. 2/- per transaction is payable to RBI.

II. Special Electronic Fund Transfer

Reserve Bank of India (RBI) has launched SEFT system to facilitate an efficient and economical system of funds transfer and clearing in the banking sector. Initially, the system would cover branches of banks as indicated by RBI, as it is essential that only networked branches of banks are part of the system. At present only Ahmedabad, Bangalore, Chennai, Delhi, Kolkata, Mumbai, Hyderabad and Nagpur centers are covered through SEFT.

A brief on the SEFT guidelines and the process flow is as follows :

SEFT Guideline of RBI

SEFT facilitates electronic transfer of funds and at present covers 2312 branches of 29 banks. The settlement in SEFT system are conducted at 12.00 noon, 2.00 p.m. and 4.00 p.m. on week days and at 12.00 noon and 2.00 p.m. on Saturdays. RBI has recently issued a circular on SEFT and the key features of this circular are :

a)The relationship between the customer and the bank will be...
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