|Author: Venkiteswaran. 29 Jul 2016 Member Level: Diamond Points : 3 (Rs 3) Voting Score: 0|
NEFT and RTGS are fast methods of money transfer from one bank customer to another bank customer within the country irrespective of distance. The transfers reach the destination account same day-(within just a couple of hours if there is no technical issues)
NEFT- National Electronic Funds Transfer
RTGS-Real Time Gross Settlement
There was difference when these systems were introduced. For easy monitoring till the system got stabilised, amounts of above rupees one lakh were segregated as RTGS and subjected to more control. However now practically for a customer there is not much difference. For individual customers now, NEFT maximum is Rs 10 lakhs. RTGS is from Rs 2 lakhs to 10 lakhs. (There is some difference in settlement between the banks and the batch wise dealings in NEFT and individual dealings in RTGS.)
Now all major banks have the facilities of NEF and RTGS.
There are charges for sending NEFT and RTGS remittances. There may be slight difference in this between banks. Some banks have different rates for different time slots also. The relevant banks may be contacted for the latest charges.
|Author: Mahesh 29 Jul 2016 Member Level: Gold Points : 3 (Rs 3) Voting Score: 0|
There are plenty of technical and financial transaction differences in between the two methods of money transfer. NEFT stands for National Electronic Funds Transfer and RTGS stands for Real Time Gross Settlement.
RTGS can be used to transfer the money from 9 to 4:30 duirng monday to friday. And during saturday you can send it from 9 to 1 pm. In case of NEFT you can send the money from 9 to 7 pm during weekdays and 9 to 1 pm during saturday.
RTGS has the limit of 2 Lakh per day. And the NEFT has no such limit. However your bank can apply limits based on the account type.
In case of financial settlement, NEFT is much slower and takes time. In case of financial settlement with RTGS, it settles real time and makes it faster money transfer.
The maximum fee that can be taken from the NEFT transaction is in the range of 25 Rs to 250 Rs. RTGS too has similar transaction fees and may increase.
NEFT is suitable for small amount of money transfer. RTGS is suitable for the large money transfer.
|Author: Timmappa Kamat 31 Jul 2016 Member Level: Gold Points : 3 (Rs 3) Voting Score: 0|
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.
|Author: gsadhiks 04 Aug 2016 Member Level: Silver Points : 3 (Rs 1) Voting Score: 0|
The full form of NEFT [National Electronics Funds Transfer System ]NEFT is an electronic fund transfer system that is operated in batches like if you want to transfer your amount to another account through NEFT then the amount to be transferred will take time, because the amount is transferred by batch system suppose if you request for transfer at 3'0 clock then the amount will be transferred in the next slot i,e 4 o'clock . Each hourly transfer is known as NEFT.
The Full form RTGS [Real Time Gross Settlement] this type of transferring fund is done immediately, i,e if you request for your fund at 3 o'clock then within few seconds it will be sent to the account that you had mentioned. This process don't wait for slots or batch wise. The funds transferred immediately is known as RTGS.
Regarding the service tax it depends on the amount of transfer and the bank association.