NEFT vs. RTGS: Know the Difference
By Shumaila Saeed || Published on January 24, 2024
NEFT (National Electronic Funds Transfer) is used for transferring funds up to any limit with batches processed hourly. RTGS (Real Time Gross Settlement) transfers funds in real-time and individually, typically used for large amounts.
Key Differences
NEFT is an electronic funds transfer system maintained by the Reserve Bank of India, enabling transactions between banks with hourly settlements. In contrast, RTGS is also maintained by the RBI but processes transactions individually in real-time, making it faster but suited for high-value transfers.
Shumaila Saeed
Jan 24, 2024
NEFT operates in hourly batches, which means transactions are grouped together and processed hourly. On the other hand, RTGS transactions are processed continuously throughout the RTGS business hours, ensuring immediate fund settlement.
Shumaila Saeed
Jan 24, 2024
The minimum transaction limit for NEFT is as low as one rupee and there is no maximum limit, making it suitable for all types of transactions. In contrast, RTGS transactions require a minimum of two lakh rupees, catering primarily to large-value transfers.
Shumaila Saeed
Jan 24, 2024
NEFT services are available 24x7, including holidays, offering flexibility for small and medium-sized transactions. RTGS, being more oriented towards larger transactions, operates during defined banking hours, which may vary between banks.
Shumaila Saeed
Jan 24, 2024
NEFT, due to its batch processing, might take a few hours for fund transfer. Conversely, RTGS, with its real-time processing, ensures that the funds are transferred almost immediately, making it a preferred method for urgent large-value transactions.
Shumaila Saeed
Jan 24, 2024
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Comparison Chart
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NEFT and RTGS Definitions
NEFT
NEFT enables individuals, firms, and corporates to transfer funds electronically from any bank branch to any individual or entity.
The company used NEFT to pay its remote freelancers.
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Jan 07, 2024
RTGS
RTGS transfers funds from one bank to another on a 'real-time' and on a 'gross' basis.
The real estate deal was closed with an RTGS transfer for immediate fund availability.
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Jan 07, 2024
NEFT
NEFT operates in hourly batches, making transfers not instantaneous.
The NEFT transaction for my insurance premium took a couple of hours to reflect.
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Jan 07, 2024
RTGS
RTGS is designed for large value transactions with a minimum of 2 lakh rupees.
He opted for RTGS to make the down payment for his new car.
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Jan 07, 2024
NEFT
NEFT allows for funds transfer across the country without the need for a physical cheque or a demand draft.
NEFT made it convenient for him to pay his university application fees online.
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Jan 07, 2024
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RTGS
RTGS services are primarily used for high-value transactions that require immediate clearing.
For their new business venture, the partners used RTGS for quick capital transfer.
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Jan 07, 2024
NEFT
NEFT is used for transferring smaller amounts with no minimum limit.
She paid her monthly gym fees using NEFT.
Shumaila Saeed
Jan 07, 2024
RTGS
RTGS is a continuous (real-time) settlement of funds individually on an order by order basis.
The company used RTGS for an immediate settlement of a high-value invoice.
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Jan 07, 2024
NEFT
NEFT is a nationwide payment system facilitating one-to-one funds transfer.
Using NEFT, Rahul transferred money to his sister's account for her birthday gift.
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Jan 07, 2024
RTGS
RTGS operates during banking hours, providing a secure and efficient method for large fund transfers.
RTGS was chosen for the inter-company fund transfer due to its reliability and speed.
Shumaila Saeed
Jan 07, 2024
Repeatedly Asked Queries
How long does a NEFT transaction take?
NEFT transactions are batch processed, so they may take a few hours.
Shumaila Saeed
Jan 24, 2024
What is the minimum amount for a NEFT transaction?
There is no minimum amount for NEFT transactions.
Shumaila Saeed
Jan 24, 2024
What is RTGS best used for?
RTGS is ideal for high-value, time-critical fund transfers.
Shumaila Saeed
Jan 24, 2024
How fast is a transaction processed in RTGS?
RTGS transactions are processed in real-time, almost immediately.
Shumaila Saeed
Jan 24, 2024
Can NEFT be used for international transfers?
No, NEFT is meant for domestic fund transfers within India.
Shumaila Saeed
Jan 24, 2024
Is RTGS available 24x7?
No, RTGS operates only during specific banking hours.
Shumaila Saeed
Jan 24, 2024
Can RTGS be used for transferring small amounts?
RTGS is not typically used for small amounts due to its minimum limit of 2 lakh rupees.
Shumaila Saeed
Jan 24, 2024
What is NEFT primarily used for?
NEFT is used for electronic transfer of funds for both small and large amounts across banks in India.
Shumaila Saeed
Jan 24, 2024
What is the minimum transaction amount for RTGS?
The minimum amount for an RTGS transaction is 2 lakh rupees.
Shumaila Saeed
Jan 24, 2024
Are RTGS transactions settled individually or in batches?
RTGS transactions are settled individually and in real-time.
Shumaila Saeed
Jan 24, 2024
Are RTGS transactions reversible?
Once processed, RTGS transactions cannot be reversed.
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Jan 24, 2024
Can NEFT be tracked?
Yes, NEFT transactions can be tracked with a Unique Transaction Reference number.
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Jan 24, 2024
Can I cancel a NEFT transaction?
NEFT transactions, once initiated, cannot usually be canceled.
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Jan 24, 2024
Can I send money internationally using RTGS?
No, RTGS is intended for domestic transactions within India.
Shumaila Saeed
Jan 24, 2024
Is RTGS safer than NEFT?
Both RTGS and NEFT are secure, governed by the Reserve Bank of India.
Shumaila Saeed
Jan 24, 2024
Is there a limit on the number of NEFT transactions per day?
There is no specific limit on the number of NEFT transactions per day.
Shumaila Saeed
Jan 24, 2024
Is there an upper limit for an RTGS transaction?
There is no upper limit for RTGS transactions, though banks may have their own policies.
Shumaila Saeed
Jan 24, 2024
Are there any charges for NEFT transactions?
Yes, banks may charge a nominal fee for NEFT transactions.
Shumaila Saeed
Jan 24, 2024
What information is needed for an RTGS transaction?
Beneficiary name, bank account number, and IFSC code are required for RTGS.
Shumaila Saeed
Jan 24, 2024
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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