BEFTN | Bangladesh Electronic Fund Transfer | EFT Fund Transfer | EFT Process

Bangladesh Electronic Funds Transfer Network (BEFTN)
BEFTN has started its 'Live Operation' on 28th February 2011 with the objective to decrease paper-based payment methods and encourage electronic payment methods for secured, faster & cost-effective transactions. The Network started with credit transactions and open for debits from 15 September 2011.

BEFTN facilitates the transmission of payments between the banks electronically, which makes it faster and efficient means of inter-bank clearing over the existing paper-based system i.e. BACPS. It is able to handle a wide variety of credit transfers such as payroll, foreign and domestic remittances, social security, company dividends, retirement, expense reimbursement, bill payments, corporate payments, government tax payments, social security payments and person to person payments. The system could handle debit transfers such as mortgage payments, loan payments, insurance premiums, utility bill payments, government tax payments, government licenses and fees.

EFT is gaining increasing popularity among the corporate and govt. bodies. Approximately 13761853 EFT transactions having transaction volume of BDT 873.86 billion were processed during the FY2015 with an increasing trend. Salary of more than 28 ministries and govt. offices are now paid through EFT. Listed public companies are paying their cash dividends through EFT network.

source: https://www.bb.org.bd/fnansys/payment...

ABOUT BEFTN
In Bangladesh, BEFTN has started its ‘Live Operation’ on 28th February 2011 with the objective to decrease paper-based payment methods and encourage electronic payment methods for secured, faster & cost-effective transactions. The Network started with credit transactions and open for debits from 15 September 2011.

The Bangladesh Electronic Funds Transfer Network (BEFTN) will operate as a processing and delivery center providing for the distribution and settlement of electronic credit and debit instruments among all participating banks. This Network will operate in a real‐time batch processing mode.



EFT is gaining increasing popularity among the corporate and govt. bodies. Salary of more than 28 ministries and govt. offices are now paid through EFT. Listed public companies are paying their cash dividends through EFT network.

DEFINITION
Bangladesh Electronic Funds Transfer Network(BEFTN) is a system of transferring money from one bank account directly to another bank without money changing hands. The EFT system provides fast, convenient, reliable and secure domestic payment and collection of funds.

In both the cases, the remitting customer gets back the money if it is not credited to the beneficiary account.

The EFT Network is a multilateral electronic clearing system in which electronic payment instructions will be exchanged among Scheduled Banks. The system involves transmitting, reconciling and calculating the net position of each individual participant at the end of each processing cycle. The participants involved are:

(a) Originator.

(b) Originating Bank (OB)

(c) Bangladesh Electronic Funds Transfer Network (EFT Operator)

(d) Receiving Bank (RB)

(e) Receiver

(f) Correspondent Bank

Some examples of EFT debit application:

Utility bill payments
Equal Monthly Installments (EMI)
Government tax payments
Government license fees
Insurance premium
Mortgage payments
Club/Association subscriptions
MINIMUM/MAXIMUM AMOUNT
Any amount of transfer through BEFTN. Few Banks fixed their maximum amount.

FEES & CHARGES
BEFTN Completely Free.

ADVANTAGES & DISADVANTAGES
ADVANTAGES:
It is easy and convenient
It is fast and secure.
It is efficient and less expensive than paper cheque payments and collections.
Does not require any fees and charges.
No wasted time dealing with the cheque that bounces.
Any amount can transfer.
DISADVANTAGES:
Stolen Credit cards may be used to pay for product or services through BEFTN.
Once an amount is transferred, the bank cannot reverse a transaction.
Comparatively slow for cash collection.
After making a remittance, the sender has no control over the funds.
CUT OF TIME
Cut off time for inter-bank fund transfer is 04:00pm. Inter-bank fund transfer instruction made on working days are sent to respective banks on the same day after the cut-off time. Processing time and/or confirmation message/receipt delivery may vary at receiving banks end.

HOW TO DO
Visit your respective Bank’s Branch where you maintain a Savings or Current Account.
Fill up the BEFTN application form.
On behalf of you, Bank will send your money from your bank account to another bank account directly if it is a rural area.
Use their mobile app.
Your money will be safely deposited to the particular account on the next day after batches.

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