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What is Difference between NEFT and RTGS Fund Transfer?

RTGS and NEFT provides two different ways of transferring money from one bank to another bank online within India. Both of these mechanisms of transferring money are maintained by Reserve Bank of India (RBI).

Before discussing the difference let's discuss about NEFT and RTGS Transactions

The full form of NEFT is National Electronics Fund Transfer and transfers the money on the basis of net settlement that means the transaction is not processed at the same time it is done in the form of batches. In each batches lot of transactions are settled. On the Weekdays NEFT service is available from 8:00 am to 6:30 pm and on Saturday it is available from 8:00 am to 12:30 pm. The NEFT transaction done in between the same timing normally gets scheduled on the same day but if you transfer the amount after 5 pm, then this will be scheduled on the next working day.

The full form of RTGS is Real Time Gross Settlement and transfers the money on the basis on Real time that means as you transfer amount from one bank to another, it is settled on the same time but the final settlement is done by the beneficiary bank that takes up to 2 hours in transferring the money. RTGS provides the fastest mechanism for transferring the money in India. On weekdays RTGS Service is available from 9:00 am to 4:30 pm and on Saturday it is available from 9:00 am to 1:30 pm.

NEFT V/S RTGS

NEFTRTGS
The Settlement in NEFT is done in batches and hence this mechanism is slower then RTGSThe settlement is done in Real Time and hence this transaction is faster than NEFT
On Weekdays this Service is available from 8:00 am to 6:30 pm and on Saturday it is available from 8:00 am to 12:30 pmOn Weekdays this service is available from 9:00 am to 4: 30 pm and on Saturday it is available from 9:00 to 1:30 pm
No minimum transfer amount limitation is thereThe minimum transfer limit of RTGS is 2 Lacs
Maximum Charges in NEFT
For 0 to 10,000 — RS 2.5
For 10,001 to 1 Lacs — RS 5
For 1 to 2 Lacs — RS 15
For Above 2 Lacs — RS 25
Maximum Charges in RTGS
For 2 to 5 Lacs — RS 25 to 30
For Above 5 Lacs — RS 50 to 55
(Lower Charger for the first half of the day)
This Transfer is suitable for small amount of transaction This Transfer is suitable for large amount of transaction

Conclusion:

In this difference between sections I have explained the difference between RTGS and NEFT Transaction. Hope the above mentioned differences are helpful for you. In case if you need further information on that topic or has any query then start the discussion by commenting below. I would love to assist you.