how many centres and bank branches is the EFT facility available?
The EFT system presently covers all the branches of the 27 public sector banks
and 55 scheduled commercial banks at the 15 centres (viz., Ahmedabad, Bangalore,
Bhubneshwar, Kolkata, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur,
Mumbai, Nagpur, New Delhi, Patna and Thiruvananthpuram). Funds transfer is possible
from any branch of these banks at these centres to other branch of any bank at
these centres both inter-city and intra-city.
is the funds availability schedule for the beneficiary?
The remitting bank transmits the funds transfer message to RBI so as to reach
NCC, before the cut off time for the settlement, the receiving bank’s account
is credited by RBI at the destination centre and beneficiary gets credit on the
Q.4. How does the
RBI EFT system operate?
Step-1: The remitter fills in the EFT Application form giving the particulars
of the beneficiary (city, bank, branch, beneficiary’s name, account type and account
number) and authorises the branch to remit a specified amount to the beneficiary
by raising a debit to the remitter’s account.
The remitting branch prepares a schedule and sends the duplicate of the EFT application
form to its Service branch for EFT data preparation. If the branch is equipped
with a computer system, data preparation can be done at the branch level in the
The Service branch prepares the EFT data file by using a software package supplied
by RBI and transmits the same to the local RBI (National Clearing Cell) to be
included for the settlement.
The RBI at the remitting centre consolidates the files received from all banks,
sorts the transactions city-wise and prepares vouchers for debiting the remitting
banks on Day-1 itself. City-wise files are transmitted to the RBI offices at the
respective destination centres.
RBI at the destination centre receives the files from the originating centres,
consolidates them and sorts them bank-wise. Thereafter, bank-wise remittance data
files are transmitted to banks on Day 1 itself. Bank-wise vouchers are prepared
for crediting the receiving banks’ accounts the same day or next day.
On Day 1/2 morning the receiving banks at the destination centres process the
remittance files transmitted by RBI and forward credit reports to the destination
branches for crediting the beneficiaries’ accounts.
is this RBI EFT System an improvement over the existing facilities?
The primary modes of funds transfer at present are demand draft, mail transfer
and telegraphic transfer. The demand draft facility is paper based. The remitter,
after purchasing demand draft from a bank branch, dispatches the same by post/courier
to the beneficiary. The beneficiary, in turn, lodges the draft to his/her bank
for collection and clearing. The time taken for completing the process is about
10 days. In the case of telegraphic transfer, fund reaches the beneficiary either
on the same day or the next; but both the remitter and the beneficiary would have
to be account holders of the same bank. If they are customers of different banks,
a good deal of paper processing is required. On the other hand, RBI EFT system
is an inter-bank oriented system. RBI acts as an intermediary between the remitting
bank and the receiving bank and effects inter-bank funds transfer. The customers
of banks can request their respective branches to remit funds to the designated
customers irrespective of bank affiliation of the beneficiary.
limit on the amount of individual transaction?
There is no value limit for individual transactions.
is the procedure for acknowledgment? How would the sending branch know that the
remitted amount has been credited to the beneficiary?
The receiving branch acknowledges every transaction it receives after crediting
the beneficiary’s account. The acknowledgment particulars reach the remitting
branch as an inward message on Day 3 of the EFT processing cycle. The remitting
branch will, therefore, have precise information as to when the beneficiary’s
account was credited.
it necessary for all branches to install computer system?
No. It is not necessary for all branches to have computer systems. Branches
can send the remittance details to their service branch in paper format (the copies
of the EFT Application Forms submitted by the remitting customers accompanied
by a Remittance Scroll). The Service branch will make data entry and transmit
the funds transfer information electronically to local NCC. But, if a branch has
computer facility, it can transmit funds transfer information electronically to
its service branch either on a floppy or through a network. This would minimise
the data entry work at the service branch.
additional organisational structure banks would be required to create?
Each participating bank has to identify a branch at the respective centre
to act as the link point for transmitting all outward messages and receiving all
inward messages. The Service Branches/Main Branches of banks who have been coordinating
the cheque-clearing work are in the best position to discharge this role. So no
additional organisational infrastructure is required to be created.
about Processing charges/Service charges
While RBI has waived processing charges till March 31, 2008, levy of service
charges by banks is left to the discretion of respective banks.