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Sujai Adithya
Business Development and Banking & Financial Services Expert
Asked a question 10 months ago

What is the difference between NEFT and RTGS?

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Sujai Adithya
Business Development and Banking & Financial Services Expert

NEFT :

  • NEFT means National Electronic Fund Transfer.
  • Its main purpose is to enable electronic cash transfer having accounts in bank branches.
  • It is used for transferring funds from one financial institution to another within India especially banks. IT was launched in November 2005, and was assigned to every bank. It was made mandatory by the RBI for all banks to migrate to NEFT.
  • No minimum and maximum limit for cash remittance.

RTGS :

  • RTGS means Real Time Gross Settlement.
  • Its main purpose is to enable electronic cash transfer having accounts in bank branches.
  • It is a fund transfer system which is moved from one ban to another in real time and on the gross basis.
  • It means that the payment transaction isn’t subject to any waiting period. The transaction will be completed as soon as the processing is done, and gross settlement means that the money transfer is completed on a one to one basis without clustering with another transaction.
  • The transaction is treated as final and irrevocable as the money transfer occurs in the books of the RBI. This system is maintained by the RBI, and it is available only during working days for a given number of hours.
  • The minimum limit is 2,00,000 Rs and there is no maximum limit.