Eft,rtgs,international banking,exchange rate

1. Presented By:
Gurpreet Kaur
MBA 4th sem
Roll no.: 1305141

2. 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.

3.  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

4.  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.

5. • 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

6.  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

8.  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

9. 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

10. FormsCorrespondent
banks
Representative
Offices
Foreign
Branches
Subsidiaries
and Affiliates
Offshore
Financial
Centera

11.  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

13. International Trade Capital Movements
Change In Prices Speculation
Strength Of Economy Government Policies
Stock Exchange Operations Political Factors

14. Types of Transactions
Options
Spot
Transactions
Forward
Transactions