RTGS VS NEFT – Know the Real Time Funds Transfer (RTGS) and National Electronic Funds Transfer (NEFT) immediate transfer of money from one bank account to the other bank account in electronic manner within minimum time spend.


RTGS stands for Real Time Funds Transfer which means the immediate transfer of money from one bank account to the other bank account in electronic manner within minimum time spend. In RTGS “Real Time” means when one bank transfers money to the other bank account at the same time the funds would be settled to the beneficiary bank but for final settlement beneficiary bank has two hours to settle the amount into the account after getting the money from the payer bank. It is one of the fastest and most secure channels through which a person can transfer funds from one account to the other account. All the RTGS transactions take place in the books of Reserve Bank of India (R.B.I.), so it is very important to know that these transactions are final and irrevocable.

For example Ram transfer Rs 10 lakhs from his SBI bank account through RTGS to Shayam’s PNB bank account, SBI instantly transferred the money to Shayam’s PNB bank and now PNB has two more hours to transfer that money to his account.


NEFT stands for National Electronic Funds Transfer which means any person, organization and firm can transfer their funds electronically from his bank branch account to the another persons, organizations or corporate bank branch account in a safest manner but the funds would not received immediately to the beneficiary bank account. The NEFT services starts from 8am till 6:30pm between Monday to Friday and on Saturday it is between 8am till 12:30pm. Generally it is seen that those transactions occurs between 8am till 5 pm would settled on the same day and after 5pm transactions would take next day to settle.

Basic Difference Btw RTGS and NEFT

The following are the reasons which create difference between RTGS and NEFT:-

Timing— for the weekdays a customer can avail RTGS facilities from 8am – 4:30pm and in working Saturday till 1pm. In case of NEFT the timings are between 8am – 7pm on the weekdays and till 1pm on working Saturday. However time may vary according to the customers timing of the bank branch.

Amount – RTGS meant for high amount money transfers in other account whereas in NEFT no minimum amount limit is there. For RTGS the minimum amount is Rs 2 Lakhs and for NEFT you can even sent Rs 1. For maximum amount there is no limit in case of RTGS and for NEFT there is no upper limit but for cash remittances it is Rs 50,000 and remittances to Nepal. However the amount may be restricted according to the bank branch policy also for example in case of SBI bank the minimum amount under Retail Internet Banking for RTGS is Rs 2 Lakhs and maximum is Rs 10 Lakhs and for NEFT it is Rs 10 Lakhs as maximum amount and no limit of minimum amount.

Charges – for NEFT the charges are between Rs 5 – Rs25 varies according to the amount and for RTGS it is between Rs 25- Rs 50.

 In case of NEFT

Upto 1 Lakhs                                                Rs. 5
Rs. 1 Lakh to 2 Lakhs Rs. 15
Rs. 2 Lakhs & above Rs. 25


In case of RTGS

Rs. 2 Lakh to 5 Lakhs Rs. 25
above Rs. 5 Lakh Rs. 50


In case of transaction failure the beneficiary bank must return the amount to the payer’s bank within two hours and the transaction must be reserved.                      


Please enter your comment!
Please enter your name here