Electronic funds transfer (EFT) is the electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff.

Types of Electronic funds transfer


The full form of ECS in banking is Electronic Clearing Service. This Service is offered by ONS banks to automate monthly transactions. It enables automatic transfer of funds from one bank account to another at a due date. Mostly it’s used to make fixed payments for interest, salary, pension, EMI or utility charges. ECS is quite beneficial for those who have either opted for a loan or have recurring monthly payments on credit cards. With ECS mandate we can set up a monthly deduction without any hassle and won’t have to remember the exact date of payment.


National Electronic Funds Transfer, NEFT is a kind of digital payment system that simplifies one to one funds transfer. NEFT payment system enables transferring funds from the account maintained with any bank to any other bank branch provided the transaction is attempted between the banks that participate in the given payment system. As against the RTGS funds transfer, the fund transfer in NEFT does not occur on a real time basis. The money transferred is settled in half hourly batches.


 Real-Time Gross Settlement (RTGS), this payment system is based on a gross settlement concept in which the payment is credited to the recipient’s account in real time. RTGS is relevant in scenarios where the transaction value is high and the immediate clearing of payment is needed.