Understanding The Difference Between Neft And Rtgs

By Author: shashank Bhaskar
Total Articles: 63
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The internet has revolutionised how inter-bank transfers happen. You need not wait several days for your transfer request to be processed. Today, transfers are processed within the day of initiating a request. NEFT and RTGS are popular bank transfer methods. People often get confused between the two.
A clear difference between NEFT and RTGS transfer drives away your confusion.
What is NEFT?
NEFT, which means National Electronic Fund Transfer, is available 24*7. Here, the transfer requests are processed in batches every 30 minutes. The transfer method depends on the net settlement. You can transfer any amount using NEFT. There is no minimum or maximum cap limit for money transfers you can make via NEFT. You can make an NEFT request online or visit the bank in person.
You only need to provide details about the beneficiary like the beneficiary’s name, Bank Account number, account type, bank name, and the Indian Financial System Code.
What is RTGS?
Called the Real Time Gross Settlement, ...
... this transfer method depends on gross settlement. The transfer service is available 24*7 and allows you to make real-time transfers. There is a minimum transfer limit of Rs. 2 lakh for RTGS transfers. This makes them ideal for carrying out high-value transactions. Similar to NEFT, you can initiate an RTGS transfer online and offline by sharing necessary bank details.
What is the difference between NEFT and RTGS?
Here are the significant RTGS and NEFT difference:
Transaction time frame
The primary difference is the processing time. NEFT transfers are processed in batches. While RTGS are real-time transfers. You can initiate both transfers online anytime. If you are visiting the bank, check their banking hours beforehand. NEFT transfers are processed in 12 batches from 8:00 AM to 6:30 PM and 8:00 AM to 1:00 PM on weekdays and Saturdays, respectively. NEFT transfers are not operational on Sundays and bank holidays.
Transaction charges
Zero charges apply on NEFT and RTGS online requests. However, if you make an NEFT request offline, you may need to pay a basic fee. Get in touch with your bank’s representative for more details.
Transfer perquisite
You need a Savings Account to initiate an online NEFT and RTGS transfer request. If you do not hold a Savings Account, deposit the funds at the nearest NEFT-enabled branch. Your request gets processed to the beneficiary having an NEFT-enabled account.
Which transfer method should you opt for?
The answer is subjective and depends on your requirement. If you need to make an urgent high-value transaction, opt for RTGS. Consider NEFT if your transfer request is not time sensitive. Carefully weigh the NEFT vs RTGS points before deciding.