What is an EFT Transfer in Canada? How to Accept CAD Payments in India with EFT?

Are you wondering what are EFT or Direct Deposit transfers in Canada? This blog will provide you with all the important information you need regarding EFT transfer.

What is an EFT Transfer in Canada? How to Accept CAD Payments in India with EFT?
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Online money transfers between Canadian bank accounts are done using electronic funds transfers (EFTs), often known as direct deposits. It is widely popular in Canada and works just like NEFT or IMPS in India.
EFT or Direct Deposit is the quickest, safest, and most secure method of money transfer in Canada.

What do I need to provide for the EFT transfer?

The sender must have your account number, account type, and routing number which is a combination of institution and transit numbers.

EFT Transfer fees

Generally, banks charge a fee for outgoing EFTs, but incoming EFTs may be free or have a lower fee.
For example, as of May 2023, the Royal Bank of Canada charged a fee of $1.50 for outgoing EFTs, while incoming EFTs are free.
The Bank of Montreal charges $1.50 for outgoing EFTs, and incoming EFTs are free for personal accounts but may have a fee for business accounts.

Time Taken in EFT Transfer

EFT transfers take up to 2 days to deposit Canadian Dollars in your local accounts.

EFT Transfer to accept CAD Payments in India

Mulya helps you accept CAD payments in India with ease.
Mulya provides you with a CAD virtual bank account with a Canadian-based bank.
You should provide your client with the information about your CAD Account on Mulya. Then your client will send you money through an EFT transfer.
Soon, CAD will be deposited into your Mulya CAD account. Then, your payments will be converted into INR with the help of Mulya’s Forex partner. Finally, payment in INR will be deposited in your Indian bank account.
Once the payment is complete, FIRC will be sent to you within 24 hours.

Fees charged for CAD transfers on Mulya

As mentioned above, EFT transfers are essentially free when it comes to accepting payments. So, if your client sends C$ 800 to you, your Mulya virtual account will receive the entire C$ 800.
Once received, Mulya charges a 1% flat all-inclusive transaction fee only while converting the payment and depositing it into your bank account.
Since Mulya uses the Google exchange rate to convert CAD to INR, there is no additional foreign exchange cost.

Time Taken in CAD Transfer by Mulya

A typical EFT transfer might take up to two days, as was previously stated. Mulya will then convert the CAD to INR and deposit the money into your bank account, taking 1 day to do so.
So, the entire transaction might take up to 3 days to complete.

Try Mulya to Accept International Payments in India

Mulya is one of the most affordable and seamless solutions to accept international payments in India. Hence, if you're seeking the best service to accept EUR, GBP, USD, etc. in India,  click here to know how to get started on Mulya.

Tax Implications and Legality of Using Canadian Virtual Accounts in India

Possessing a virtual CAD account and using EFT to receive foreign payments in India is entirely legal.
Regarding taxes, receiving EFT transactions through virtual accounts in Canada has no taxable consequences. In India, you just have to pay taxes based on your tax slabs.
Samarth Srivastava

Samarth Srivastava has spent few years honing their skills and knowledge in the field of international payments. With a deep passion for finance and a keen eye for global business trends, the author has become a trusted authority on all things related to international payments.