E-COMMERCE
 E COMMERCE INVOLVES TRANSACTIONS USING
INTERNET
 IT DRAWS ON TECHNOLOGIES

E-BANKING
 IT IS AN ELECTRONIC PAYMENT SYSTEM
 IT HELPS FINANCIAL INSTITUTIONS TO
CONDUCT FINANCIAL TRANSACTIONS IN A
WEBSITE

ELECTRONIC FUND TRANSFER
 EXCHANGE OF MONEY FROM ONE ACCOUNT TO
ANOTHER THROUGH COMPUTER
 Cardholder-initiated transactions, using a payment card such as
a credit ordebit card
 Direct deposit payment initiated by the payer
 Direct debit payments, sometimes called electronic checks, for
which a business debits the consumer's bank accounts for
payment for goods or services
 Wire transfer via an international banking network such
as SWIFT
 Electronic bill payment in online banking, which may be
delivered by EFT or paper check
 Transactions involving stored value of electronic money, possibly
in a private currency

PROCESS OF EFT
 Entering Supplier Master Information
 Entering Payment Instrument Defaults
 Entering Bank Account Information

Various modes of EFT in India-
NEFT,RTGS,IMPS
 NEFT-NATIONAL ELECTRONIC FUNDS TRANSFER
 RTGS-REAL TIME GROSS SETTLEMENT
 IMPS-IMMEDIATE PAYMENT SERVICE

NEFT-NATIONAL ELECTRONIC FUNDS TRANSFER
 The National Electronic Funds Transfer is a nation-
wide money transfer system which allows customers
with the facility to electronically transfer funds from
their respective bank accounts to any other account of
the same bank or of any other bank network
 Funds transfer through NEFT requires a transferring
bank and a destination bank.

NEFT……..
 Before transferring funds via NEFT you register the
beneficiary, receiving funds. For this you must possess
information such as name of the recipient, recipient’s
bank name, a valid account number belonging to the
recipient and his respective bank’s IFSC code.
 Any sum of money can be transferred using the NEFT
system with a maximum capital of Rs. 10, 00, 000.

RTGS-REAL TIME GROSS SETTLEMENT
 It is a real time funds transfer system which facilitates
you to transfer funds from one bank to another in real
time or on a gross basis. The transaction isn’t put on a
waiting list and cleared out instantly.
 RTGS payment gateway, maintained by the Reserve
Bank of India makes transactions between banks
electronically. The transferred amount is instantly
deducted from the account of one banks and credited to
the other bank’s account.

RTGS……
 The minimum value that can be transferred using
RTGS is Rs. 2 Lakhs and above. However there is no
upper cap on the amount that can be transacted.
 The remitting customer needs to add the beneficiary
and his bank account details prior to transacting funds
via RTGS. The details required while transferring
funds would be the beneficiary’s name; his/her
account number, receiver’s bank address and the IFSC
code of the respective bank.

IMPS-IMMEDIATE PAYMENT SERVICE
 The National Payments Corporation of India
introduced a pilot mobile payment project also known
as the Immediate Payment Service (IMPS).
 IMPS offers instant electronic transfer service using
mobile phones. The IMPS service also features a
secure transfer gateway and an immediate
confirmation on fulfilled orders.
 IMPS is offered on all the cellular devices via Mobile
Banking or through SMS facility.

IMPS…..
 To be able to transfer money via IMPS route you must
first register for the immediate payment services with
your bank
 Thus IMPS enables customers to use mobile
instruments as an instant money transfer gateway,
facilitating user convenience and saving time and
effort involved in other modes of transfer.

EFT ACT
 The Electronic Fund Transfer Act was passed by
the U.S. Congress in 1978
 to establish the rights and liabilities of consumers as
well as the responsibilities of all participants
in electronic funds transferactivities.

ADVANTAGES OF EFT…..
 Increase efficiency and productivity.
 Manage cash flow easily.
 Improve safety and control.
 Saves money.
 Less paper works.
 Eliminate the risks associated with lost,
stolen, or misdirected cheques

ADVANTAGES………
 EFT Provides our office with the capacity to,
Automate our payments.
Electronically update our accounts information.
Streamline our cash flow.
Reduce administrative cost.
Eliminate overdue accounts.
Manage delayed disbursements.
Get set up and add customers.

“EFT SAVES
OUR TIME
AND MONEY’’
In short we
can say that
EFT is
FAST,
SIMPLE,
SAFE, and
SECURE.

DISADVANTAGES
 The fund transfer process generally consists of a
series of electronic messages sent between
financial institutions directing each to make
debit and credit accounting entries necessary to
complete the transaction. The fund transfer can
generally be described as a series of payment
instruction messages, beginning with the
originator’s (Sending customer’s) instructions,
and including a series of further instructions
between the participating institutions, with the
purpose of making payment to the beneficiary
(Receiving customer’s).

 One of the major disadvantages of EFT is RISK OF SECURITY ISSUE.
Electronic banking largest adversary is the hackers who try to steal the
customer’s money and their information. When the account has been
compromised, money can be stolen. Hacker’s can also use the
information obtained to steal one’s identity. This could mean a lots of
trouble for the customer that can take years to fix. Ones credit accounts
are opened in his or her name it can be many years before the debts are
taken care and removed off of their credit report.
 If you entered the target account number incorrectly, there is no way to
reverse the transaction since the bank would process the transaction
under the belief that the information you provided is accurate
 Once an amount is transferred, the bank cannot reverse a transaction.

THANK YOU….