ELECTRONIC FUND TRANSFER AND CLEARING SYSTEM (EFTCS)
Background

The RMA with the objective of strengthening the Payment Systems in Bhutan has initiated the implementation of Electronic Fund Transfer and Clearing System (EFTCS) Project for strengthening the Payment Systems in Bhutan aimed at providing better services to the public.

With the introduction of EFTCS, the inconveniences and delays associated with the current cash and other paper based transfer of funds such as cheques and drafts is minimized as the participants are able to settle their transactions efficiently and faster.

Benefits of EFTCS

Following are some of the benefits of using the EFTCS by Individuals (customers), User Institutions and the banks:

  1. Transfer of funds from one branch of a bank to any branch of any other participating commercial bank in Bhutan shall be possible.
  2. Receipts/payments of funds shall be faster.
  3. Administrative cost associated with the conventional method of payments shall be minimized to a greater extent.
  4. It is very safe and secure mode of transfer of funds.
Types of Payments
  1. National Electronic Funds Transfer (NEFT) System

    NEFT is a nation-wide funds transfer system to facilitate individual transfer of funds from one branch of a bank to another branch of any other participating commercial bank in Bhutan. The Settlement is done on hourly basis thereby facilitating receipts of funds within an hour of transfer.

  2. National Electronic Clearing System (NECS)

    It is a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House. This is normally for bulk transfers from one account to many accounts or vice-versa.

NECS Debit

Under NECS Debit, the account of an institution shall be credited by debiting money from the accounts of many customers. In other words, NECS (Debit) is used for raising debits to accounts of multiple customers for crediting the account of a particular institution, thus involving multiple debits and a single credit.

It is a scheme under which an account holder with a bank can authorise the User Institution to recover an amount at a prescribed frequency by raising a debit in his account.

NECS Credit

Similarly, in NECS Credit transactions, the accounts of individuals maintained with commercial banks shall be credited with amounts payable to them by the company/organization for payments on account of dividends, salaries, pensions etc. In other words, NECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit to an account of the concerned company/organization. Companies/organizations can initiate the transactions after registering themselves with the clearing house.

Types of transactions covered under NECS (Credit) are Payment of salaries, dividends, pension etc. The institution originating such Credits to the accounts of the beneficiaries shall intimate the beneficiaries about the details of such transfers including the date on which the proceeds shall be credited in their bank accounts.