What Is BEFTN? How Bangladesh’s Bank Transfer System Works

If your salary lands in your account every month, if your parents’ pension arrives on time, or if your loan instalment is taken automatically, BEFTN is probably doing the work. Most people in Bangladesh use it without ever hearing the name. Here is what it is, how it works, when your money arrives, and when you should use something faster.

Editor’s note: Rumana, her father and her company are illustrative, created to explain how BEFTN works in everyday situations. They are not real people. The rules, timings and fees come from the published sources linked in this article.

The salary that did not arrive

It was the last Thursday of the month, and Rumana, an HR officer at a garment accessories company in Gazipur, had sent salaries for 300 workers from the company’s bank. By evening, her phone was ringing. Most workers had been paid, but a dozen said nothing had arrived. Her father, a retired school teacher in Cumilla, called too: his monthly payment from a different bank had not shown up either.

“The bank says it’s BEFTN,” Rumana told her manager. “Whatever that means.”

By Sunday morning, almost everything had arrived. Two payments came back because of wrong account details. That weekend, Rumana decided to find out exactly how the system works, so it would not surprise her again.

What is BEFTN?

BEFTN stands for Bangladesh Electronic Funds Transfer Network. It is a system run by Bangladesh Bank that moves money electronically between accounts at different banks in Bangladesh. It launched on 28 February 2011 as the country’s first paperless interbank transfer system, replacing many payments that used to need cheques or demand drafts.

BEFTN is a batch system. Instead of sending each payment on its own the moment you press “send”, banks collect instructions and BEFTN processes them together in scheduled sessions. That makes it cheap and ideal for large numbers of payments, such as salaries for thousands of workers, but not instant. Since November 2023, BEFTN has run under Bangladesh Bank’s upgraded “Nikash” framework, according to a 2026 explainer that cites the central bank’s circular.

How a BEFTN transfer travels

Here is what happened to one of Rumana’s salary payments, step by step:

1. The instruction. Rumana uploads the salary file through her company’s corporate internet banking. Each line has the worker’s name, account number, bank, branch routing number and amount.
2. The sending bank checks and forwards. Her company’s bank (the “originating bank”) debits the company account and sends the payment instructions to BEFTN.
3. BEFTN sorts the batch. At the next session, BEFTN groups all instructions from all banks and works out what each bank owes the others.
4. Net settlement. Instead of moving money for every single payment, Bangladesh Bank settles the net amount between banks through their accounts at the central bank.
5. The receiving bank credits the worker. Each worker’s bank (the “receiving bank”) then credits the money to the right account.
6. Or the payment comes back. If the account number is wrong, closed or does not match, the receiving bank returns the payment, and the money goes back to the sender’s account, usually within a couple of sessions.

When will my money arrive?

BEFTN runs in three sessions on working days. Pubali Bank, for example, lists the sessions like this:

Session	Window
Session 1	12:00 noon to 3:00 pm
Session 2	3:00 pm to 11:59 pm
Session 3	12:00 midnight to 10:00 am

What this means in practice:

• Send early on a working day. Payments submitted in the morning of a working day usually arrive the same day or by the next morning.
• Each bank has its own cut-off. Your bank may stop accepting BEFTN instructions for a session earlier than the system window, so ask your bank for its cut-off time.
• Weekends and holidays wait. Transfers sent on a Friday, Saturday or public holiday are processed on the next working day. That is exactly what happened to Rumana’s Thursday-evening salary run.
• Special holiday schedules. Bangladesh Bank sometimes keeps clearing systems open on certain holidays, such as before Eid, and announces it in advance.

Two directions: credit and debit

BEFTN moves money both ways.

Type	What happens	Everyday examples
Credit transfer	Money is pushed from the sender’s account to the receiver’s account	Salaries, pensions, dividends, vendor payments, government allowances, money sent to family, incoming remittance payouts
Debit transfer	An organisation you have authorised pulls money from your account	Loan and credit card instalments, insurance premiums, utility bills, DPS instalments at another bank, membership fees

Debit transfers only happen with your written or digital authorisation, usually called a mandate. If money is taken without your permission, report it to your bank immediately.

What you need to send money by BEFTN

• The receiver’s full name as it appears on the account
• The receiver’s account number
• The receiver’s bank and branch name
• The branch’s 9-digit routing number, issued by Bangladesh Bank
• The amount and, ideally, a short reference such as “October salary” or “Invoice 104”

You can send it through your bank’s internet banking, mobile app or a branch. Most banks require an OTP or token to approve the transfer. The routing number matters more than people think: one wrong digit can send the payment to the wrong branch or get it returned. Ask the receiver to share it, or copy it from their cheque book or bank statement, rather than guessing.

How much does BEFTN cost?

Bangladesh Bank sets interbank transfer fees. In April 2026, the finance minister told parliament that BEFTN carries no charge per transfer, NPSB up to Tk 10 and RTGS up to Tk 100, including VAT, and that there was no plan to change them, The Business Standard reported. Pubali Bank also describes its BEFTN service as free.

In practice, some banks still list a small charge for sending BEFTN through their internet banking; Islami Bank, for example, was reported to apply a Tk 10 internet banking charge per BEFTN transfer as of March 2026. Banks also set their own limits; the same report cited Islami Bank allowing up to Tk 5 lakh a day across 20 transactions. Check your bank’s schedule of charges and daily limits before sending large amounts.

BEFTN, NPSB or RTGS: which one should you use?

Bangladesh has three main ways to move money between banks. They do different jobs.

Feature	BEFTN	NPSB	RTGS
Full name	Bangladesh Electronic Funds Transfer Network	National Payment Switch Bangladesh	Real Time Gross Settlement
How it works	Batches, in sessions	Instant, one by one	Instant, one by one, settled individually
Speed	Same or next working day	Usually within seconds	Usually within minutes during operating hours
Amount	Limits set by your bank	For individuals, up to Tk 3 lakh per internet banking transfer and Tk 10 lakh a day	Minimum Tk 1 lakh for customer taka transfers
Fee (central)	No charge per transfer	Up to Tk 10	Up to Tk 100
Hours	Working days, in sessions	As set by your bank, often around the clock	Working days, about 10 am to 5 pm
Best for	Salaries, pensions, bills, regular and bulk payments	Small, urgent transfers and card or ATM transactions	Large, urgent payments such as a flat booking or supplier deposit

NPSB limits and RTGS hours as summarised from Bangladesh Bank circulars in an October 2026 comparison; fees as stated in parliament in April 2026. Your bank’s own limits and charges may differ.

A simple way to choose

• Paying many people, or no hurry? Use BEFTN. It is free or nearly free and handles bulk payments well.
• Need it there in seconds, and under Tk 3 lakh? Use NPSB.
• Tk 1 lakh or more, and urgent today? Use RTGS during working hours.

Why some of Rumana’s payments went wrong

When Rumana checked, the delays and returns had three simple causes, the same ones that trip up most people:

1. Timing. The file went in on Thursday evening, after her bank’s cut-off, so it waited for Sunday’s sessions.
2. Wrong routing numbers. Two workers had moved to new branches and gave old routing numbers. Their payments came back.
3. A closed account. One worker had closed an old account without telling HR.

If your BEFTN payment has not arrived

• Check whether it was sent after the cut-off, or on a weekend or holiday.
• Ask the sender for the transaction reference and the account and routing details they used.
• Wait for the next session or two; returns usually come back within a couple of sessions.
• If it still has not arrived after two working days, contact your own bank’s branch with the reference number.
• Remember that once a BEFTN payment is processed to the wrong account, reversing it needs both banks’ cooperation and is not guaranteed. Double-check before sending.

BEFTN for businesses

For a company, BEFTN is the cheapest way to make routine payments to many people. Rumana’s company now uses it for:

• Payroll, uploaded as one file through corporate internet banking.
• Supplier payments on fixed days each week.
• Collecting payments by debit mandate from regular customers, so dues are taken automatically on the due date.

Her new rules: upload salaries two working days before payday, check every new employee’s account and routing number against a bank document, and keep a list of returned payments to fix the same day. For walk-in customers and online sales, businesses also need tools such as Bangla QR and payment gateways; our guide to digital payment solutions for Bangladeshi businesses explains those.

Is BEFTN safe?

The system itself is run and settled by Bangladesh Bank, and money moves only between regulated banks. The risks are mostly human:

• Typing mistakes in account or routing numbers.
• Fraudsters who send fake “change of bank details” emails to companies, asking them to pay a supplier into a new account. Always confirm new details by phone with a person you know.
• Sharing OTPs. No bank will ever ask for your OTP. Anyone who does is trying to steal from you.

BEFTN and money from abroad

When money is sent to Bangladesh, the final step to your local bank account often uses BEFTN, especially for payouts from remittance companies and international payment platforms. That is why a payout sent on a Thursday afternoon may not show up until Sunday. If you receive money from clients abroad, our guides on which international payment platform works best for Bangladeshi businesses and how freelancers get paid from abroad explain the full journey.

The end of Rumana’s story

The next month, Rumana uploaded salaries on Tuesday morning. Every payment arrived by Wednesday. Her father’s pension arrived on its usual day too; it had only been delayed by the weekend. And when the company needed to pay Tk 8 lakh urgently to a fabric supplier one afternoon, she used RTGS instead and the supplier confirmed it within the hour.

“BEFTN isn’t slow,” she told her manager. “It just runs on a timetable. Once you know it, it works.”

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This article is for general information only. Session times, cut-offs, limits and fees can change and vary by bank. Check with your bank before making large or urgent transfers.

Frequently asked questions

What is the full form of BEFTN?

Bangladesh Electronic Funds Transfer Network, a system run by Bangladesh Bank for electronic transfers between banks.

How long does a BEFTN transfer take?

Usually the same working day or the next working day, depending on which session your bank submits it to. Transfers sent on weekends or public holidays wait for the next working day.

Is BEFTN free?

The government says there is no charge per BEFTN transfer, but some banks list a small fee for sending it through internet banking. Check your bank’s schedule of charges.

What is a routing number?

A 9-digit code issued by Bangladesh Bank that identifies a specific bank branch. You need the receiver’s routing number to send money by BEFTN.

What is the difference between BEFTN and NPSB?

BEFTN processes payments in batches at set times and suits bulk and regular payments. NPSB sends payments instantly, one at a time, and suits smaller urgent transfers.

What happens if I send money to the wrong account?

If the account does not exist or details do not match, the payment is usually returned. If it is credited to someone else’s valid account, contact your bank immediately; recovery needs both banks’ cooperation and is not guaranteed.

Does BEFTN work on Friday and Saturday?

No. BEFTN processes on working days. Payments sent on Friday, Saturday or a public holiday are processed on the next working day, unless Bangladesh Bank announces a special schedule.

Key words explained

Term	What it means
BEFTN	Bangladesh Electronic Funds Transfer Network: batch transfers between banks.
NPSB	National Payment Switch Bangladesh: instant interbank transfers and card switching.
RTGS	Real Time Gross Settlement: instant, high-value transfers settled one by one.
Batch processing	Collecting many payments and processing them together at set times.
Session	A scheduled processing window in BEFTN.
Routing number	A 9-digit code identifying a bank branch.
Credit transfer	Money pushed from your account to someone else’s.
Debit transfer	Money pulled from your account by an organisation you authorised.
Net settlement	Settling only the difference banks owe each other, rather than each payment.

How we reported this

We used the April 2026 statement on interbank fees reported by The Business Standard, Pubali Bank’s published BEFTN session times, a 2026 BEFTN explainer citing Bangladesh Bank circulars, and an October 2026 comparison of BEFTN, NPSB and RTGS that summarises central bank circulars. Where sources differ, such as on whether banks charge for BEFTN, we show both. Rumana, her father and her company are illustrative, not real people.