Presented By:

Gurpreet Kaur

MBA 4th sem

Roll no.: 1305141

ETF refers to the computer-based system used to

perform financial transactions electronically.

Is a system whereby anyone who wants to make

payment to another person/company etc. can

approach his bank and make cash payment or

give instructions/authorization to transfer funds

directly from his own account to the bank

account of the receiver/beneficiary.

RBI is the service provider of EFT.

Quick movement of deposited money from the bank

account of the customer to the other bank account

of other customer.

No intermediation of paper based system.

Encryption key for protection and security.

Credit Transfer

Debit Transfer

ATM

At Point of Sale

Cheque Truncation

The way of ETF transaction is through the use of

payment gateway.

Transaction of credited sum with different bank is

called inter-bank EFT.

Transaction of credited sum with same bank is called

intra-bank EFT.

RBI allows only intra-bank EFT.

Avoiding postal delays and Frauds.

Avoiding Loss of instrument.

Reduction of paper work and save time of staff.

Faster and easier access to funds.

• RTGS system is a funds transfer mechanism where transfer of money takes

place from one bank to another on a 'real time' and on 'gross' basis

• This is the fastest possible money transfer system through the banking

channel

• Settlement in 'real time' means payment transaction is not subjected to any

waiting period. The transactions are settled as soon as they are processed

• 'Gross settlement' means the transaction is settled on one to one basis

without bunching with any other transaction

• Considering that money transfer takes place in the books of the Reserve

Bank of India, the payment is taken as final and irrevocable

To protect the key existing assets of the banking system, i.e.,

the brand name and customer relationship.

To widen and strengthen the customer base.

To reduce the prevalent transaction cost.

To explore revenues for generating additional income for the

banks.

Real-time Payment Settlement.

No Credit Risk.

Predictability of Cash Flows.

Benefits to Economy : The instant finality of payments ensures

fast, secure and irrevocable settlement of major business and

financial market transactions

Banking transactions crossing national boundaries

Undertake International Lending –

- All claims of domestic banks offices on foreign

residents

- Claims of foreign bank offices on local residents

- Claims of domestic bank offices on domestic

residents in foreign currency

1.Facilitate imports and exports of their clients – trade

financing

2.Arrange for foreign exchange – cross-border

transactions and foreign investments

3.Assist in hedging exchange rate risk

4.Trade foreign exchange products for their own

account

5. Borrow and lend in the Eurocurrency market

6. Participate in underwriting of Eurobonds and foreign

bonds issues

FormsCorrespondent banks

Representative Offices

Foreign Branches

Subsidiaries and Affiliates

Offshore Financial Centera

International transaction in cash requires two distinct purchases Purchase of foreign currency

Purchase of good/service with the FC

Term foreign exchange is used to denote foreign currency

Foreign exchange market exists to cater to the demand for foreign currency/currencies

Only a small fraction of daily transactions in foreign exchange involve trading of currency

Exchange Rate denotes the price or the ratio or the value at which one currency is exchanged for another

International Trade Capital Movements

Change In Prices Speculation

Strength Of Economy Government Policies

Stock Exchange Operations Political Factors

Types of Transactions

Options

Spot Transactions

Forward Transactions