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Difference Between NEFT and RTGS

Main difference

NEFT and RTGS are banking services to transfer money from one bank to another in India. Transferring money from one account to another within the bank is simple, but transferring money to other bank accounts requires protocols. NEFT stands for “Domestic Electronic Funds Transfer”, in which money is transferred between two banks on a net settlement basis. RTGS stands for “Real Time Gross Settlement”, where money is transferred in real time.

What is NEFT?

NEFT stands for “National Electronic Funds Transfer” and is a method of transferring money from one bank to another within India. In NEFT, money transfer is done on a net settlement basis, which means money transfer is done in patches after each patch is settled in a specified time. NEFT service is available from 8:00 a.m. to 5:00 p.m. M. To 6:30 p.m. M. Monday through Friday and 8:00 a.m. to 5:00 p.m. M. To 12:30 p.m. M. On Saturdays. The money to be transferred may take 1 day to transfer or you may receive it before the transfer is made in the early morning.

What is RTGS?

RTGS stands for “Real Time Gross Settlement” and is a method of transferring money from one bank to another within India. In RTGS, the money transfer is done in real time, which means that as you transferred the money, it will be in the account of one in another bank to which you transferred money, in the next moment without delay.

Key differences

  1. NEFT is a money transfer on a net settlement basis, while RTGS is a real-time money transfer.
  2. NEFT stands for “Domestic Electronic Funds Transfer”, while RTGS stands for “Real Time Gross Settlement”.
  3. NEFT settling is slower while RTGS settling is faster.
  4. RTGS has a minimum transfer limit of 2 lac, while NEFT does not have a minimum transfer limit.
  5. Hours for NEFT from Monday to Friday are from 8:00 am to 6:30 pm while for RTGS from 9:00 am to 4:30 pm.
  6. The hours for NEFT on Saturdays are from 8:00 am to 12:30 pm while for RTGS from 9:00 am to 1:30 pm.
  7. In NEFT crediting occurs in hourly lots between banks, while in RTGS crediting occurs in real time between banks.
  8. NEFT is suitable for small money transfers, while RTGS is suitable for large money transfers.

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