Electronic funds transfer

Electronic funds transfer

Electronic funds transfer

Electronic funds transfer – Many modern banks have computerised their Cheque handling  process with computer networks and other electronic equipments. These banks are dispensing with the use of paper cheques. The system called the electronic fund transfer (EFT) automatically transfers money from one account to another.

This system facilitates speedier transfer of funds electronically from any branch to any other branch. In this system the sender and the receiver of funds may be located in differentdifferent cities and may even bank with different banks. Funds transferred within the same city is also permitted. The scheme has been in operation since February 7, 1996 in India.

The other important type of facility in the electronic fund transfer (EFT) system is automated clearing houses. These are the computer centres that handle the bills meant for deposits and the bills meant for payment. In big companies pay is not disbursed by issued cheques or issuing cash. The payment office directs the computer to credit an employees account with the person’s pay.

Tele banking

Tele banking : Tele banking refers to banking on phone services a customer can access information about his/her account through a telephone call and by giving the coded personal identification number (PIN) to the bank. Telebanking is extensively user-friendly and effective in nature.

  1. To get a particular work done through the bank, the users may leave his instruction in the form of message with the bank.
  2. Facility to stop payment on request. One can easily know about the cheque status.
  3. Information on the current interest rates.
  4. Information with regard to foreign exchange rates.
  5. Request for a DD or pay order.
  6. Demat account related services.
  7. And other similar services.

Mobile banking

Mobile banking – A new revolution in the realm of electronic banking is the emergence of mobile banking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone access to real-time banking services, regardless of their location. But there is much more to mobile banking from just on-line banking.

It provides a new way to pick up information and interact with the banks to carry out the relevant banking business. The potential of mobile banking is limitless and is expected to be a big success.booking and paying for travel and even tickets is also expected to be a growth area.

According to this system, customer can access account details on mobile using the short messaging system (SMS) technology where select data is pushed to the mobile device.

The wireless application protocol (WAP) technology, which will allow users to surf the net on their mobiles to access anything and every thing. This is a very flexible way of transacting banking business.

Already ICICI and as HDFC banks have tied up Cellular service provides such as Airtel, orange, sky cell, etc. In Delhi and Mumbai to offer these mobile banking services to their customers.