NEFT stands for National Electronic Funds Transfer. While RTGS means Real Time Gross Settlement. Both are online money transfer services.
In RTGS, the funds are transferred in real time. The funds transfer is handled in an individual basis. In NEFT the funds are transferred in batches irrespective of the individual cases.
Difference between the two modes
1. The major difference between the two is the settlement timings. RTGS is based on per instruction basis. That means the funds are transferred instantly to the beneficiary accounts. NEFT clears the transfer requests on an hourly basis. The hourly batches are managed in 12 batches from 8 am to 7pm. On saturdays, there are only six batches from 8 am to 1 pm.
That means an RTGS transaction booked at 12,15 pm will be cleared instantly, while an NEFT transaction at the same time gets cleared at 1 pm.
2. The minimum amount that can be transferred through RTGS is Rs. 2 Lakhs. There is no such minimum or maximum limit for the NEFT transactions.
3. There is a difference in the fees chargeable for the services. For RTGS transactions, the fees chargeable are Rs. 30 per transaction. NEFT fees have different slabs for the transactions. Fees for transactions upto Rs. 1 lakh is Rs. 5 while it is Rs. 15 for transactions from Rs. 1 to 2 Lakhs. For transactions exceeding Rs. 2 Lakhs, you will be charged at Rs. 25 per transaction.
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