Difference between RTGS and NEFT
RTGS: Real Time Gross Settlement
- It is introduced in 2004
- The timings are restricted from 8 am to 4:30 pm from Monday to Friday and 9 AM to 2 PM on Saturdays.
- The minimum transfer value is Rs.2 lakh
- The maximum transfer value is Rs.10 lakh
- Type of settlement is One-on-one settlement
- Service availability : Between Rs.2 lakh up to Rs.5 lakh – Rs.25 From Rs.5 lakh up to Rs.10 lakh – Rs.50
- RTGS completes transactions in real-time and is, therefore, faster than NEFT
- RTGS is a high-value transfer system, handling funds worth Rs 100,000 and above.
- There is a Continuous Settlement cycle on a working day.
- Processing: Fast
NEFT: National Electronic Funds Transfer
- It is introduced in 2005.
- The timings are restricted from 8 am to 6:30 pm from Monday to Friday and 8 AM to 1 PM on Saturdays.
- The minimum transfer value is Rs.1
- The maximum transfer value is No limit
- Type of settlement is Batches
- Service availability :Weekdays: 12 batches between 8:00 a.m. – 6:30 p.m. Saturday: 6 batches between 8:00 a.m. 1:00 p.m. Sunday and bank holidays: Unavailable
- It completes transactions in cycles.
- NEFT transfers smaller amounts below Rs 100,000
- There is 12 Settlement cycle on a working day.
- Processing: Comparatively Slow
Common Key Points of RTGS and NEFT
Sender and beneficiary should be a part of the respective network
Amount to be transferred
Account number of the sender
Account number of the beneficiary
Beneficiary’s IFSC code