Between NEFT and RTGS 2022 – Read in Detailed

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Difference Between NEFT and RTGS
Between NEFT and RTGS

Gone are the days when you would have to wait for days to see whether the cash you transferred had arrived at its destination or not. With the most recent headways in banking and in advanced installments and transfers, the errand of sending cash has been made somewhat moment, with real-time transfers.

Nowadays, there are various approaches to transfer cash to anyplace on the planet. These online transfers chiefly incorporate NEFT, IMPS, and RTGS transfers.

To Understand the what is the Difference Between NEFT and RTGS First, We Have To Understand what is NEFT ( National Electronic Funds Transfer ) and What is RTGS Real-time gross settlement

The Full Form of NEFT & RTGS is Given Below

  1. National Electronic Funds Transfer
  2. Real-time gross settlement
What is NEFT ( National Electronic Funds Transfer
What is NEFT ( National Electronic Funds Transfer )

What is NEFT ( National Electronic Funds Transfer )

Understanding NEFT

The following points will help you understand what is NEFT as a money transfer mode-

  • NEFT is a one-to-one payment facility
  • NEFT transactions can be processed only between the banks that offer NEFT-enabled services
  • Transactions made through NEFT do not take place in real-time; implying that it takes a few days for NEFT transactions to complete
  • Before December 2019, RBI had fixed timings during which NEFT transactions can be processed. Any NEFT transaction will be processed only between 8:00 AM and 6:30 PM from Monday to Friday, and 8:00 AM to 12:00 PM on Saturdays. However, from 2020, NEFT transactions can be performed 24*7
  • To transfer funds through NEFT, you must add beneficiaries on the internet banking portal of your required bank
  • There are no limits on the amount of NEFT transactions
  • There is a fee applicable on all NEFT transactions; the amount varies from Rs. 2.5 to Rs. 25, depending on the amount being transferred
  • As per RBI guidelines, the payments made via NEFT are processed and settled in batches of half-hour

Here’s how NEFT transactions work-

  • Log in to the your internet banking account
  • On the main page, click on ‘Fund transfer’
  • From the drop down menu that appears, select ‘NEFT’
  • Note that you need to ‘Add beneficiary’ to the list of beneficiaries in your account if you haven’t done so already
  • To add a new beneficiary, you need to click on ‘Add beneficiary’ option on the page
  • Enter the beneficiary’s required information such as his/her name, bank account number, IFSC, etc.
  • Click on ‘Confirm’ or ‘Add’
  • To authenticate this step, you will be asked to enter the OTP sent to your registered mobile number
  • After doing so, your action would be processed. It will take around 24 hours to add a beneficiary
  • Once the beneficiary is added to your account, you need to select the beneficiary details (to whom you need to send the money) from your list of beneficiaries
  • Enter the amount that needs to be transferred and confirm your transaction
  • Click on ‘Confirm’ and the amount will be transferred from your bank account to the other’s

Steps for an NEFT Money transfer

Step 1: Go to Fund Transfer tab, and select ‘Transfer to another bank’ (NEFT)

Step 2: Select the beneficiary record and enter the important subtleties

Step 3: Accept the (Terms and Conditions)

Step 4: Recheck the subtleties, assuming all and complete the procedure

Image of NEFT form

SBI NEFT Form Image
What is RTGS ( Real-time gross settlement )

What is RTGS ( Real-time gross settlement )

  • Transactions made through RTGS are processed on a one-to-one basis
  • RTGS facility can be accessed at any time, on any day of the year
  • The Real Time Gross Settlement method is mostly used for transactions of high value
  • The RTGS service can be used using both online and offline modes
  • Since it is managed by the Reserve Bank of India, RTGS is a safe and secure method of transferring funds
  • RTGS allows the real-time transfer of funds
  • There are no additional charges applicable on the transactions made through RTGS
  • The RTGS services can be accessed at 24*7, throughout the year
  • The transactions to be made through RTGS can be initiated from anywhere using internet banking
  • All the RTGS transactions are backed legally; hence, there is minimal risk of frauds

Here’s how RTGS transactions work-

  • Log in to the your internet banking account
  • On the main page, click on ‘Fund transfer’
  • From the drop down menu that appears, select ‘RTGS’
  • Note that you need to ‘Add beneficiary’ to the list of beneficiaries in your account if you haven’t done so already
  • To add a new beneficiary, you need to click on ‘Add beneficiary’ option on the page
  • Enter the beneficiary’s required information such as his/her name, bank account number, IFSC, etc.
  • Click on ‘Confirm’ or ‘Add’
  • To authenticate this step, you will be asked to enter the OTP sent to your registered mobile number
  • After doing so, your action would be processed. It will take around 24 hours to add a beneficiary
  • Once the beneficiary is added to your account, you need to select the beneficiary details (to whom you need to send the money) from your list of beneficiaries
  • Enter the amount that needs to be transferred and confirm your transaction
  • Click on ‘Confirm’ and the am

The RTGS administration window for client’s transactions is accessible to banks from 9:00 am to 4:30 pm on weekdays and from 9:00 am to 2:00 pm on Saturdays for settlement at the RBI-end. Notwithstanding, the timings that the banks pursue may differ contingent upon the client timings of the bank branches, the national bank noted.

The base adds up to be remitted through RTGS is Rs 2 lakh. There is no upper roof for RTGS transactions.

Steps for an RTGS Fund transfer

Step 1: Go to Fund Transfer tab, and select ‘Transfer to other banks’ (RTGS)
Step 2: Select the recipient account and enter the relevant details
Step 3: Accept the (Terms and Conditions)
Step 4: Recheck the details, if all are correct, then confirm and complete the process

Image of RTGS form

SBI RTGS Form Image

DIFFERENCES BETWEEN NEFT & RTGS in Tabular Format

Criteria NEFT RTGS (Retail)
Settlement Done in batches (Slower) Real-time (Faster)
Full-Form National Electronic Fund Transfer Real-Time Gross Settlement
Timings on Mon – Fri 8:00 am – 6:30 pm 9:00 am – 4:30 pm
Timings on Saturday 8:00 am – 12:30 pm 9:00 am – 1:30 pm
A minimum amount of money transfer limit No Minimum 2 lacs
The maximum amount of money transfer limit No Limit No Limit
When does the Credit Happen in the beneficiary account Happens in the hourly batch Between Banks Real-time between Banks
Maximum Charges as per RBI Up to 10,000 – Rs. 2.5
from 10,001 – 1 lac – Rs. 5
from 1 – 2 lacs – Rs. 15
Above 2 lacs – Rs. 25
Rs. 25-30 (Upto 2 – 5 lacs)
Rs. 50-55 (Above 5 lacs)
(Lower charges for the first half of day)
Suitable for Small Money Transfer Large Money Transfer

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What are the most common methods of online money transfer?

The various methods of online money transfer include RTGS, IMPS, NEFT, UPI and digital wallet. Each of these methods can be performed online and allow easy and fast money transfer facility

Is money transfer free of cost?

In most domestic transactions, money transfer is free of cost. However, some banks may charge a minimal fee on money transfer through a specific method

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