Inter-bank Funds Settlement at Reserve Bank

Every participating bank and admitted institution shall open and maintain in every SEFT centre a settlement account for settlement of payment obligations arising under the funds transfer executed under the SEFT system.

1. Every participating bank or institution admitted in the SEFT System shall, subject to compliance with the procedural guidelines, be entitled to execute any payment order for Funds Transfer to a beneficiary of the payment order, issued or accepted by it.

2. Every participating bank or institution shall maintain the security, integrity and efficiency of the System.

1. The sending bank shall not execute a payment order without complying with the security procedure. No payment order shall be accepted for execution in the SEFT System if the beneficiary's bank / branch is not a participating bank or institution.

2. The sending bank shall be responsible for the accuracy of the name of the beneficiary, the nature and style of the account and account number of the beneficiary, the name of the beneficiary's bank and the authenticity of every payment order executed by it.

3. The sending bank shall bear the liability for loss if any caused to any participant in the SEFT System on account of the acceptance by it of any revocation of a payment order after it has executed it.

4. The sending bank shall not be entitled to bind any other participants in the SEFT System with any "special circumstances" attached to a payment order accepted by it.

5. The sending bank shall maintain duly authenticated record of all payment orders executed by it for a period for which bank records are required to be preserved under the applicable rules.

6. The sending bank shall, upon completion of funds transfer of a payment order, furnish to the originator on request by him, a duly authenticated record of the transaction.

1. The sending SEFT Service Branch shall be responsible for the accuracy of the contents of EFT data file and the authenticity of the payment orders contained therein as received by the SEFT Centre in compliance with the security procedures.

2. The sending SEFT Service Branch shall be responsible for settlement of all payment obligations in regard to payment orders executed by it.

3. The sending SEFT Service Branch shall be responsible for ensuring execution of the EFT data file complying with security procedures and time schedule.

4. The sending SEFT Service Branch shall ensure, before execution of any EFT Data File that the balance in its settlement account are adequate to cover its settlement obligation and ensure that the ceiling, if any, specified for it is not exceeded and the requirement of collateral if specified by the Nodal Department is adequate for execution of the EFT data file executed by it.

The sending SEFT Service Branch shall generate, dispatch and maintain records of transaction in accordance with procedure specified.

1. Receiving SEFT Centre shall be responsible for receiving and processing the Data Files complying with the security procedure and time schedule specified for the purpose.

2. The SEFT Centre shall in compliance with time schedule and security procedure, process and sort out the Data File bank-wise and after crediting the settlement accounts with the corresponding value, transmit the NCC Data Files to the respective receiving SEFT Service Branches.

3. The SEFT Centre shall generate, dispatch and maintain records of transactions, in accordance with the procedure specified.

1. Receiving SEFT Service Branch shall be responsible for receiving NCC Data File from the receiving SEFT Centre in compliance with the security procedure.

2. Receiving SEFT Service Branch shall process the NCC Data File in compliance with the security procedure and sort-out the payment orders into branch wise lots and transmit to the respective branches the payment orders for execution in accordance with the time schedule and in compliance with the security procedure.

3. Receiving SEFT Service Branch shall generate, dispatch and maintain records of transaction accordance with the procedure specified.

The beneficiary bank shall execute the payment order on the SEFT working day on which the payment order is received by it unless it notices one or more of the following deficiencies.

1. The beneficiary specified in the payment order has no account or the account of the beneficiary maintained by the beneficiary's bank does not tally with the account specified in the payment order

2. The beneficiary bank is prevented by instructions of the beneficiary not to give or receive any credit to the account.

3. The account designated in the payment order isclosed.

The beneficiary bank may reject a payment order on one or more of the grounds mentioned in Clause (1) above. The beneficiary bank shall notify, in the manner specified, the sending bank of the rejection of the payment order along with the reasons thereof.

A charge shall be levied by the SEFT centre for SEFT processing. The current rate is Rs.2/- per transaction.