Difference between RTGS and NEFT

RTGS: Real Time Gross Settlement

  1. It is introduced in 2004
  2. The timings are restricted from 8 am to 4:30 pm from Monday to Friday and 9 AM to 2 PM on Saturdays.
  3. The minimum transfer value is Rs.2 lakh
  4. The maximum transfer value is Rs.10 lakh
  5. Type of settlement is One-on-one settlement
  6. Service availability : Between Rs.2 lakh up to Rs.5 lakh – Rs.25 From Rs.5 lakh up to Rs.10 lakh – Rs.50
  7. RTGS completes transactions in real-time and is, therefore, faster than NEFT
  8. RTGS is a high-value transfer system, handling funds worth Rs 100,000 and above.
  9. There is a Continuous Settlement cycle on a working day.
  10. Processing: Fast

NEFT: National Electronic Funds Transfer

  1. It is introduced in 2005.
  2. The timings are restricted from 8 am to 6:30 pm from Monday to Friday and 8 AM to 1 PM on Saturdays.
  3. The minimum transfer value is Rs.1
  4. The maximum transfer value is No limit
  5. Type of settlement is Batches
  6. 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
  7. It completes transactions in cycles.
  8. NEFT transfers smaller amounts below Rs 100,000
  9. There is 12 Settlement cycle on a working day.
  10. Processing: Comparatively Slow

Common Key Points of  RTGS and NEFT

  1. Sender and beneficiary should be a part of the respective network

  2. Amount to be transferred

  3. Account number of the sender

  4. Account number of the beneficiary

  5. Beneficiary’s IFSC code

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