## Electronic Fund Transfer (EFT)
### Background
With advances in information technology, the banking system has switched to computerisation of branches to offer efficient banking and cash management services. The network links different branches and banks together.
### How Customers Benefit
1. Instant updating of accounts
- Transactions reflect immediately, eliminating reconciliation delays.
2. Quick transfer of funds
- Money moves between accounts/banks in minutes (NEFT, RTGS, IMPS) instead of days.
3. Instant information about foreign exchange rates
- Real-time FX rates enable timely treasury decisions.
### Why EFT Matters for Treasury
- Faster collections → lower float → lower working capital needs.
- Faster payments → ability to time supplier payments precisely.
- Real-time visibility → better cash forecasting and FX management.