Type to search

Difference between NEFT & RTGS


Difference between NEFT & RTGS


In the digital banking world, the importance of knowing the nitty-gritty of online transactions is paramount, especially at a time when going out in a crowded place is not advisable. The knowledge of online transactions reduces the time spent in long queues at banks and subsequent paperwork. Besides the quick process, one will always have the digital record of their transactions at the touch of a fingertip!


What is NEFT and timings for such transactions?

The Reserve Bank of India (RBI) introduced The National Electronic Funds Transfer (NEFT) for ease of business. The transactions are undertaken per the RBI’s rules and regulations in a centralized system across the nation. NEFT transfers are done from one bank account to another bank account. The process is swift and time-saving, provided your account is enabled for NEFT transfers. Also, to keep in mind are the following rules about NEFT & NEFT time:

  1. NEFT transfers can be done round the clock and pan India
  2. Following the transfer from one account, the transactions stay in a queue which is cleared every hour
  3. Once the beneficiary receives the amount, confirmation of the successful transaction is sent to the registered email address and phone number in real-time
  4. The banking application — for both the sender and the beneficiary — will have the receipt of the transaction
  5. The RBI does not levy any charges on the NEFT transfers from customers having a savings bank account

What are RTGS and its timings?

Real-Time Gross Settlement (RTGS) is used to transfer funds or securities continuously for undertaking online interbank transfer of money in real-time from one bank to another. Following are a few points to remember about RTGS & RTGS timing:

  1. RTGS is the fastest way of online interbank transactions
  2. There is a cap of Rs 2 lakh on transfers. Any amount of Rs 2 lakh or over can be done via RTGS
  3. The marketing of money or securities happens in real-time
  4. Real-time means the transfers are processed immediately, as soon as received from the remitting bank, and deposited in the beneficiary’s account.
  5. The transfers are overlooked as per the rules and regulations of RBI
  6. One has to check with their bank if they offer RTGS services

Difference between NEFT and RTGS

  1. The fundamental difference between the NEFT and RTGS is the value of money transfers. While NEFT is usually used to make small transitions, RTGS is generally used to make large transactions with utmost safety. At the same time, NEFT is used to make online transfers.
  2. Under NEFT transfers, multiple transfer requests and clubbed together and cleared on an hourly basis from the respective remitter’s account to the beneficiary’s account.
  3. Under RTGS transfers, requests are cleared in real-time as per the demand of the remitter’s account.
  4. While NEFT transfers take some time, RTGS are processed as soon as the request is sent.


Both NEFT and RTGS are essential tools of online transactions, and understanding the process is of utmost importance. Both can be undertaken online and offline, although, in the digital era, it is safer and easier to conduct transactions through one’s banking application on the cellphone.





Calvin M. Barker

Typical tv scholar. Problem solver. Writer. Extreme bacon fan. Twitter maven. Music evangelist. Spent a year consulting about salsa in Fort Lauderdale, FL. Spoke at an international conference about lecturing about junk food in New York, NY. Earned praise for promoting robotic shrimp in Phoenix, AZ. Spent 2002-2007 working on catfish in Naples, FL. Spent several months developing yogurt in Orlando, FL. Spent high school summers managing dandruff in Africa.