Difference Between NEFT vs. RTGS

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Main Difference

NEFT and RTGS are banking services for transferring money from one bank into another bank in India. For transferring the money from one account into another with-in the bank is simple but for transferring of money to other bank account needs protocols. NEFT stands for “National Electronic Fund Transfer”, in which money is transferred between two banks on net settlement basis. RTGS stands for “Real Time Gross Settlement”, in which money is transferred in real time basis.

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What is NEFT?

NEFT stands for “National Electronic Fund Transfer” is money transfer method from one bank to another bank with-in India. In NEFT the money transfer is done on the net settlement basis which means money transfer is done in patches after the settlement of each patch in specific time. NEFT service is available from 8:00 am to 6:30 pm on weekdays and 8:00 am to 12:30 pm on Saturday. The money that is to be transferred may take 1 day to get transfer or it may get before it you transfer is done early in the morning.

What is RTGS?

RTGS stands for “Real Time Gross Settlement” is a money transfer method from one bank to another with-in India. In RTGS the money transfer done on the real time basis which means that as you transferred the money, it will be in the account of one in other bank to whom you transferred money, in the next moment without time delay.

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Key Differences

  1. NEFT is money transfer on net settlement basis while RTGS is money transfer on real time basis.
  2. NEFT stands for “National Electronic Fund Transfer” while RTGS stands for “Real Time Gross Settlement”.
  3. The settlement in NEFT is slower while that of RTGS is faster.
  4. RTGS has minimum transfer limit of 2 lac while NEFT has no minimum transfer limit.
  5. Timings for NEFT on Monday to Friday are 8:00 am to 6:30 pm while for RTGS 9:00 am to 4:30 pm.
  6. Timings for NEFT on Saturday are 8:00 am to 12:30 pm while for RTGS 9:00 am to 1:30 pm.
  7. In NEFT the credit happens in hourly batches between the banks while in RTGS the credit happens in real time between the banks.
  8. NEFT is suitable for small money transfer while that RTGS is suitable for large money transfer.