Difference Between NEFT and RTGS
NEFT is an abbreviation for "National Electronic Funds Transfer". The NEFT is a nation wide payment system facilitating one-to-one funds transfer. It operates on a deferred net settlement (DNS) basis and settles transactions in batches. The settlement takes place with all the transactions received before a certain cut-off time. NEFT is not available on the bank holidays, RBI holiday and Sunday.
RTGS is an abbreviation for "Real Time Gross Settlement". RTGS can be defined as specialist funds transfer system to transfer the money from one bank to another on continuous (real-time) and gross settlement basis. It allows the individuals as well as the companies and the firms to transfer funds from one bank to another bank within the country.
There are many differences between NEFT and RTGS as listed in the following table which would help you choosing between the two:
NEFT Vs RTGS
Basis of Difference | NEFT (National Electronic Funds Transfer) | RTGS (Real Time Gross Settlement) | |
---|---|---|---|
Definition | The system of electronically transfer of funds from one bank or bank branch to another bank or bank branch | Vs | The system of electronically transfer of funds from one bank or bank branch to another bank or bank branch where the fund trasfer takes place on a real time basis |
Fund Transfer Limit (Rs.) | No Limit | Vs | 2 Lakh and above |
Required Device | Internet, Website & Application | Vs | Internet, Website & Application |
Information Required | Account Number & IFS Code | Vs | Account Number & IFS Code |
Fund Transfer Time | Usually, on the same day | Vs | Real time, usually within 30 minutes |
Fund Transfer to abroad | Yes | Vs | Yes |
Beneficiary Registration Required | Yes | Vs | Yes |
24 X 7 Money Transfer | No | Vs | Yes |
Cost of Fund Transfer | Rs. 2.50 to Rs. 25 plus taxes | Vs | Rs. 30 to Rs. 55 plus taxes |
Alert sent after money collection | No | Vs | No |
Payment gateway involvement | Yes | Vs | Yes |
Banks offering payment method | Almost all banks in India | Vs | Almost all banks in India |
E-Commerce transactions | Yes, possible | Vs | Yes, possible |