Three times increase in electronic transactions

[img_assist|nid=9830|title=|desc=|link=none|align=left|width=100|height=67]The Reserve Bank of India reports that number of transactions settled through electronic funds transfer services increased to 1.9 million in June 2008 from 675 thousand in April 2007 while the value of transactions didn’t prove to be similarly high. In April 2007 the total amount processed electronically made up Rs 121.6 million increased to Rs 200 million by May 2008 and dropped to Rs 131.9 million in June 2008.The Reserve Bank of India reports that number of transactions settled through electronic funds transfer services increased to 1.9 million in June 2008 from 675 thousand in April 2007 while the value of transactions didn’t prove to be similarly high. In April 2007 the total amount processed electronically made up Rs 121.6 million increased to Rs 200 million by May 2008 and dropped to Rs 131.9 million in June 2008.

The use of electronic funds transfer systems are currently being widely promoted by RBI which made the service compulsory. The bank imposes the regulation to make all payments electronically on the institutions under subordinate to RBI.

The retail electronics funds transfer system includes electronic clearing services (ECS), electronic funds transfer (EFT) and the national electronics funds transfer system (NEFT). While ECS is largely used by institutions to settle payments to the government, EFT is now permitted only for government payments. All other electronic retail funds transfers are being routed through the NEFT system.