Concept of BACHS and BEFTN:

To automate the functions of payment system through the clearing houses under the control of Bangladesh Bank, a program was launched in the name of Bangladesh Automated Clearing House (BACH) with two components- one is Bangladesh Automated Cheque Processing System (BACPS) and Bangladesh Electronic Funds Transfer Network (BEFTN).

BACHS stands for Bangladesh Automated Clearing House System which is the nationwide electronic payment network that allows the actual clearing of electronic payments and payment-related information between financial institutions. It is an electronic network for financial transaction. The main benefits of making and receiving BACH payments are cost savings and convenience. BACH processes large volume of debit and credit transactions which are originated in batches. It has two components –

1. The Automated Cheque Processing System and

2. The Electronic Funds Transfer.

The Bangladesh Electronic Funds Transfer Network (BEFTN) operates as a processing and delivery centre providing for the distribution and settlement of electronic credit and debit instruments among all participating banks. BEFTN is the central clearing facility, operated by Bangladesh Banks that receives entries from originating banks, distributes the entries to appropriate receiving banks and facilitate the settlement functions for the participating banking institutions. BEFTN is a highly reliable and efficient nationwide batch-oriented funds transfer system which provides for the interbank payment and settlement of electronic debits and credits. It enables businesses and their customers to exchange money between each other electronically instead of via checks or wire transfers.
Features of BEFTN:

▪ End to end electronic form (required no instrument).

▪ EFT transaction may both be debit or credit.

▪ EFT Operates