Online Bank to Bank Transfer - NEFT

FAQ on EFT System
1. What is RBI-EFT System?

RBI EFT is a Scheme introduced by Reserve Bank of India (RBI) to help banks offering their customers money transfer service from account to account of any bank branch to any other bank branch in places where EFT services are offered.

2. At 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.

3. What is the funds availability schedule for the beneficiary?

If the remitting bank transmits the funds transfer message to RBI so as to hit the first

settlement at 12 noon, the receiving bank’s account is credited by RBI at the
destination centre and beneficiary gets the credit on Day 1 itself. If the same is
included in subsequent settlements i.e., for 2 pm and 4 pm, the beneficiary gets
credit on Day 2.
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.
Step-2: 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 specified format.
Step-3: 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 of 12 noon, 2 pm and 4 pm.
Step-4: 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.
Step-5: 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.
Step-6: 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.