RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) are both electronic payment systems used in India, but they differ in terms of transaction processing, settlement timings, and transaction limits. Here are the key differences between RTGS and NEFT:
Transaction Processing: RTGS enables real-time and immediate transfer of funds on a gross basis, which means each transaction is settled individually. On the other hand, NEFT operates in batches and settles transactions in scheduled settlement cycles.
Settlement Timings: RTGS operates on a real-time basis, which means transactions are settled immediately and continuously throughout the working hours of the bank. In contrast, NEFT operates in predefined settlement cycles during specific time slots. Currently, NEFT has a cycle of 30 minutes
Transaction Limits: RTGS is primarily used for high-value transactions as there is usually a minimum threshold amount for initiating an RTGS transfer. In India, the minimum amount for RTGS transactions is typically set at Rs. 2 lakh or higher. NEFT, on the other hand, has no minimum or maximum transaction limit and can be used for both small and large-value transfers.
Cost: RTGS transactions usually come with higher transaction charges compared to NEFT transactions. The charges for NEFT transactions are typically lower or even free for certain types of accounts.
