NEFT & RTGS in detail


The acronym “NEFT” stands for National Electronic Funds Transfer. It is a nation-wide payments system that allows the transfer of funds from one bank’s account to another & has become one of the most popular ways of transferring funds.

It has eliminated the need of physically visiting the bank branches since the funds can be transferred electronically from any bank branch to any individual .


Earlier the NEFT transactions could be processed from 8:00 AM to 6:30 PM from Monday to Friday only.

But now RBI has regularized that NEFT transactions will be available 24*7 on all days of the year, including holidays.


The procedure for transferring funds through NEFT is listed as follow-

  • Firstly, log in to the internet banking facility of the concerned bank & go to the NEFT fund transfer section.
  • Proceed further by choosing and selecting the name of the beneficiary to whom you wish to send the money.
  • enter the required details such as name, account number, and IFSC code among others.
  • On entering the details, verify the details, and click on ‘Confirm’ & enter the 4-digit OTP received on your registered mobile number.
  • Once the beneficiary is successfully added, you can initiate an NEFT transfer. Just enter the amount to be remitted and send.


There is no minimum or maximum limit on the amount of transactions that can be made with NEFT. However, when it comes to cash transactions, you can transfer up to Rs.50,000 per transaction.


Transfer Amount Transaction Charges
Up to Rs.10,000 Rs.2.5 + GST
Rs.10,000-Rs.1 lakh Rs.5 + GST
Rs.1 lakh-Rs.2 lakh Rs.15 + GST
Above Rs.2 lakh Rs.25 + GST



Real-time gross settlement (RTGS) is a system that performs continuous real-time fund transfers and is primarily meant for large value transactions.  It is an electronic method to transfer money from one bank to another bank on a real-time or gross basis within the country .

Gross-settlement’ means the fund transfer instructions will be handled on an instruction by instruction basis.


  • RTGS is meant for high-value transactions. The minimum limit for fund transfer under RTGS is Rs 2 Lakh while there is no maximum limit.
  • This method can be used for transfer of funds within the country.
  • The transactions in RTGS are quick and done on a transaction to transaction basis in RTGS business hours, thus saving time.
  • There are no settlement or credit risks involved as funds are settled instantly .
  • Online RTGS transactions can be done free-of-charge. However, RTGS transactions done through bank branches may incur certain transaction charges along with GST.


RBI has notified that RTGS payment system will be available for customers on a round-the-clock basis, from 1st December 2020. This means that RTGS is available 24*7*365 days.

Earlier, RTGS was available for customers from 7.00 am to 6.00 pm on all working days of a week, except the second and fourth Saturdays of every month.


There are 2 modes of transferring funds available through RTGS , namely-

  1. OFFLINE METHOD– Visit the nearest bank branch and fill the RTGS form to initiate a fund transfer.
  2. ONLINE METHOD – Many banks offer the facility to add beneficiary online using the internet banking facility. After this, enter all the details regarding beneficiary’s account number, IFSC Code, amount etc & click the ‘confim’ button to initiate the RTGS fund transfer.


Following are the main points of difference b/w NEFT and RTGS-

Criteria NEFT RTGS
Settlements Transactions are carried out in batches Transactions are carried out in individual batches
Transaction Timings Any time of the day and any day of week Any time of the day and any day of week
Transaction Amount Limit No minimum limit No maximum limit
Value Meant for low to medium level transactions Meant for high-value transactions( more than Rs 2 lakhs)



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