This document discusses electronic fund transfers (EFT), including the legal framework and challenges. It defines EFT as transferring money electronically between bank accounts without physical cash. There are several types of EFT in India, including NEFT, RTGS, and IMPS. The document outlines how EFT works and discusses challenges such as fraud, security issues, and technical integration challenges when transferring funds across borders or currencies. It concludes that while EFT benefits the economy, risks still exist around privacy, identity theft, and deception that consumers need to be aware of.

1. BANKING LAW
TOPIC:
MECHANISM OF ELECTRONIC FUND TRANSFERS :
LEGAL FRAMEWORK AND WORKING
CHALLANGES

2. INTRODUCTION
 In modern times, banking business is being
conducted through a personal computer via internet
and it is called e-banking. Bank Customers can
transact banking tasks, through online banking
including Electronic Funds transfer between
customer’s linked accounts; Loan applications and
transactions such as repayment of enrollments;
payment of bills etc.
 Electronic Funds Transfer is a system of transferring
money from one bank account directly to another
without any banknotes/coins changing hands.

3. Conti…
 It refers to the computer based systems
used to perform financial transactions
electronically initiated through the
exchange or transfer of money either
within the same financial institution or
across multiple institutions using an
electronic terminal, the telephone or the
computer

4. WHAT IS EFT ?
 An electronic funds transfer moves money from one account to
another electronically over a computerized network. EFTs
require both the sender and recipient to have bank accounts.
The accounts do not have to be at the same financial institution
to transfer funds. Both individuals and businesses can make
EFT payments over the computer, using card readers, or over
phones.
TYPES OF EFT.
1. NEFT (National Electronic Fund Transfer)
2. RTGS (Real Time Gross Settlement
3. IMPS (Immediate Payment Service)

5. HOW DOES ELECTRONIC FUND TRANSFER
WORK?
 EFT payment processing time
 How can I stop payment?
 LEGAL FRAMEWORK
Settlement of disputes

6. CHALLENGES TO EFT
1. Fraud and chargebacks
2. Cross-border transactions
3. Card data security
4. Multi-currency and payment methods
5. Technical integration

7. CONCLUSION
 Electronic transfer funds have been around for many years
and the economy has greatly benefited from this
technological advance.
 An electronic payment system such as credit cards has
facilitated monetary transactions and even provides a way to
finance everyday purchases through credit.
 Because of this, bitcoins are gaining popularity but there are
still many questions and considerations of a virtual economy.
However, the risk of identity thefts, market euphoria, and
privacy issues will always exists.
 However, Internet transaction can be very dangerous too. We
might be deceived. Therefore, we should use Internet
transactions safely and properly.

8. THANK YOU