What is NEFT and RTGS? What is the difference between NEFT and RTGS?
NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement) are two major systems in India for transferring funds from one bank account to another electronically. Both are managed by the Reserve Bank of India (RBI).
🔹 NEFT (National Electronic Funds Transfer)
- Nature: Deferred settlement – transactions are processed in batches.
- Settlement Time: Generally settled in half-hourly batches, available 24×7, including weekends and holidays.
- Transfer Limit: No minimum or maximum limit, but individual banks may impose their own caps.
- Processing Speed: Slower than RTGS; suitable for small to medium-value transactions.
- Charges: Usually free for online transactions. Some charges may apply if done through a bank branch.
- Ideal For: Regular, low-to-medium value fund transfers.
🔹 RTGS (Real-Time Gross Settlement)
- Nature: Real-time and gross settlement – transactions are processed individually as they occur.
- Settlement Time: Instantaneous, available 24×7 (including holidays).
- Transfer Limit: Minimum ₹2 lakh, no upper limit.
- Processing Speed: Very fast; funds are transferred immediately.
- Charges: Usually free for online banking; charges may apply for branch-based transfers.
- Ideal For: High-value transactions where speed is critical.
Summary Table:
| Feature | NEFT | RTGS |
|---|---|---|
| Settlement Type | Batch-wise | Real-time |
| Availability | 24×7 | 24×7 |
| Minimum Limit | No minimum | ₹2 lakh |
| Maximum Limit | No upper limit | No upper limit |
| Speed | Slower (batch-wise) | Instant |
| Use Case | Routine payments | High-value, urgent payments |
Let me know if you want help with how to do a NEFT/RTGS transfer online or through a bank.