RTGS & NEFT

RTGS & NEFT
 

NEFT, RTGS and IMPS, all three offer quick money transfer but all of these are different from each other. Nonetheless, these three fund transfer methods may differ from each other according to inter-bank regulations but separately their functioning remains the same.

NEFT

NEFT stands for National Electronic Funds Transfer which is an online system for transferring funds between the banks. This is a nationwide funds transfer system that settles transactions in batches. Only the transactions that are received within the limited cut-off time are settled in NEFT. The system operates in hourly batches which are 8:00 am to 7:30 pm on Monday to Saturday (except 2^nd & 4^th Saturday). The minimum amount of fund transfer through NEFT is Rs.1.00 whereas no maximum limit. Here is a list of charges levied on NEFT according to the transfer amount.

RTGS

 RTGS is real-time gross settlement which is the fastest way to transfer money through standard banking system. RTGS is maintained by RBI and is available on all working days for a specific period of time. In RTGS, funds are transferred in real-time meaning that there is no waiting period. Opposite to NEFT, RTGS manages transfers on an individual basis and does not perform cluster transactions. In the case of server downtime or any other issue, the beneficiary bank has to transfer the funds within two hours of receiving the fund transfer message. If the beneficiary does not receives the money even within the time period of two hours then the funds are credited back to the benefactor’s account.

Any amount of fund transfer through RTGS is considered as final as the record directly goes to the books of RBI. Only the banks having core banking facility can facilitate RTGS transaction on specific hours of any working day. The timings are 8:00 am to 6:30 pm on Monday to Saturday (except 2^nd & 4^th Saturday). The minimum transaction amount through RTGS is Rs.2.00 lakh whereas no maximum limit.