FinTech Glossary

What is EFT (Electronic Funds Transfer)?

Electronic Funds Transfer (EFT) refers to the digital transfer of money between bank accounts without physical instruments such as cash or cheques. It enables fast, secure, and traceable movement of funds across financial systems.

Types of EFT in India

EFT includes multiple systems used in India:

1. NEFT: batch-based transfers

2. RTGS: high-value real-time transfers

3. IMPS: instant transfers

4. UPI: real-time mobile-based payments

Each method differs in speed, transaction limits, and use cases. EFT systems are regulated and ensure secure processing through banking infrastructure.

Why EFT is Important for Businesses

EFT simplifies business payments by reducing manual effort and delays. It supports vendor payments, salary transfers, and refunds while maintaining clear transaction records. Compared to cash or cheque-based payments, EFT improves efficiency, transparency, and audit readiness. As businesses scale, reliance on electronic transfers becomes essential for operational continuity.

Business Context and EnKash Relevance

Businesses often manage multiple fund transfers across banks and systems. EnKash helps streamline EFT workflows by enabling structured approvals, centralised tracking, and simplified reconciliation. This reduces errors and improves visibility into outgoing payments.