What is NEFT & RTGS? Make a note of these highly used common terms

Very often we can hear these two words during our bank transaction.

• NEFT
• RTGS

But what exactly these two words mean? Lets look into little bit deeper.

What is NEFT?

It is a nationwide payment system facilitating one to one fund transfers.using these scheme,you can transfer funds from any bank branch to any individual having an account with any other bank within

India. In NEFT money transfer requests are clubbed together called batches. Such batches are settled on the basis of deferred net settlement on hourly basis during NEFT timings.

Suppose you want to transfer a sum of money from HSBC to SBI, you can use NEFT through interner banking. Internet banking also allow to do RTGS.  

What is RTGS?

Real time gross settlement-In case of RTGS fund transfer takes place in real time and gross basis.That means money is sent individually not in batches. RTGS is faster then NEFT.

Difference between NEFT & RTGS

1)NEFT settlement will be in batches and settled on hourly basis and RTGS transfers in real time.

2)NEFT money transfer timing-
monday to friday-8:00-6:30
Saturday-8:00-12:30

RTGS money transfer timing-
Monday to friday-8:00-8:00
Saturday-8:00-3:30

3)There is no minimum or maximum limit of NEFT fund transfer.
But there is minimum limit of 2 lac for RTGS,no max limit.

4)charges of NEFT-
Upto 10000 Rs -- Rs 2.5
10001 - 100000--Rs.5
100001-200000--Rs 15
200000-500000--Rs 25
Rs 500000 and above--Rs 25

Charges of RTGS-
2lac-5lac--Rs 25 - Rs 30
5lac and above--Rs 50-Rs 55