Electronic Fund Transfer (EFT) is the digital transfer of money from one bank account to another without using physical cash, cheques, or paper documents.
Electronic Fund Transfer (EFT) enables fast, secure, and convenient money transfers through electronic systems. It eliminates the need for physical banking methods and supports real-time or scheduled transactions.
In India, EFT includes popular systems such as:
These systems are regulated by the Reserve Bank of India to ensure safety and efficiency.
EFT is widely used for bill payments, salary transfers, online shopping, and business transactions. It offers benefits like instant processing, 24/7 availability (in many cases), and reduced transaction costs.
With the growth of digital banking, EFT has become an essential part of modern financial systems.
"A person transfers ₹5,000 from their bank account to a friend using UPI through a mobile app. This is an example of an electronic fund transfer."