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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 DifferenceNEFT (National Electronic Funds Transfer) RTGS (Real Time Gross Settlement)
DefinitionThe 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 DeviceInternet, Website & Application
Vs
Internet, Website & Application
Information RequiredAccount Number & IFS Code
Vs
Account Number & IFS Code
Fund Transfer TimeUsually, on the same day
Vs
Real time, usually within 30 minutes
Fund Transfer to abroadYes
Vs
Yes
Beneficiary Registration
Required
Yes
Vs
Yes
24 X 7 Money TransferNo
Vs
Yes
Cost of Fund TransferRs. 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 transactionsYes, possible
Vs
Yes, possible