Electronic Fund Transfer (EFT) is the transfer of funds from one bank account to another using electronic means. It allows individuals and businesses to make payments and transfer money without the need for physical currency.
There are different types of electronic money transfers like Automated Clearing House (ACH), Wire Transfers and Card-Based Payments.
To initiate an EFT transaction, the sender must first authorize their bank to transfer the specified amount of money from their account to a recipient’s account.
This mode of payment can be extremely beneficial for students who are studying abroad and are far away from their families or any working individual.