What is the Difference Between RTGS and NEFT?

The main difference between RTGS (Real-time Gross Settlement) and NEFT (National Electronic Funds Transfer) lies in the processing of transactions. Here are the key differences between the two:

1. Settlement: RTGS handles transactions in real-time on a one-to-one basis, while NEFT processes transactions in half-hourly batches.
2. Transaction Limits: NEFT has no minimum or maximum limit on the amount to be transferred, but RTGS transactions can only be performed if the amount to be transferred is equal to or more than ₹2 lakh.
3. Settlement Time: NEFT transactions take around 2 hours to be processed, while RTGS transactions are processed immediately.
4. Transfer Timings: NEFT is available 24x7, all 365 days, but RTGS transfer timings vary from bank to bank.
5. Charges: No charges are levied for NEFT transactions if done online, but RTGS transactions may incur additional charges.
6. Mode of Transfer: Both NEFT and RTGS can be done online and offline.

In summary, RTGS is preferred for urgent transfers of large amounts and is processed in real-time, while NEFT is preferred for non-time-sensitive transfers of smaller amounts and is processed in batches. Both methods are safe and secure systems for fund transfers and are monitored by the Reserve Bank of India.

Comparative Table: RTGS vs NEFT

The main differences between RTGS and NEFT are as follows:

In summary, RTGS is more suited for urgent transfers of funds, while NEFT is more suited for non-time-dependent transfers. The choice between RTGS and NEFT depends on factors such as transfer amount, urgency, and operating hours.