Learn Difference Between NEFT and RTGS: Know the Key Differences (2024)

NEFT (National Electronic Funds Transfer)

RTGS (Real-Time Gross Settlement)

NEFT is a payment system that facilitates the transfer of funds from one bank account to another on a deferred net settlement basis.

RTGS is a payment system that enables real-time, immediate, and individual transfer of funds between banks on a gross settlement basis.

NEFT operates in hourly batches and settles transactions in a deferred manner, typically with settlement cycles scheduled throughout the day.

RTGS operates continuously, processing and settling transactions individually in real-time, without any batching or time delays.

NEFT is available for both interbank and intrabank transfers, allowing individuals and businesses to transfer funds between their own accounts or accounts in different banks.

RTGS is primarily designed for large-value transactions, typically involving a minimum threshold amount, and is used for interbank transfers or high-value transactions by individuals and businesses.

NEFT transfers are settled in batches, and the funds are credited to the beneficiary's account within a specific time window depending on the NEFT settlement cycle.

RTGS transfers are settled individually and immediately, with the funds credited to the beneficiary's account in real-time, within minutes of initiating the transaction.

NEFT has specific operating hours during which transactions can be initiated. It operates on weekdays (Monday to Friday) and on working Saturdays, excluding bank holidays.

RTGS operates on weekdays (Monday to Friday) and on working Saturdays, excluding bank holidays. It has extended operating hours compared to NEFT, allowing for more flexibility in initiating transactions.

NEFT transactions have no minimum transaction amount, and even small-value transactions can be processed through NEFT.

RTGS transactions usually have a minimum transaction amount threshold set by the respective country's central bank or banking regulator.

NEFT transactions may have a maximum transaction limit per transaction depending on the bank's policy, but it is typically higher than the limit for immediate payment systems.

RTGS transactions often have higher transaction limits compared to NEFT, allowing for the transfer of larger amounts of money.

NEFT transactions have a standardized settlement process, and the funds are settled in the beneficiary's account within a specific time frame, usually on the same day or the next working day.

RTGS transactions have an immediate settlement process, and the funds are credited to the beneficiary's account almost instantly, in real-time.

NEFT charges a nominal fee for outgoing transactions, which varies based on the transaction amount and the policies of the respective banks.

RTGS charges a higher fee compared to NEFT, as it provides real-time settlement and is typically used for high-value transactions. The fee may vary based on the transaction amount and the policies of the respective banks.

NEFT is suitable for non-time-critical transactions where immediate fund availability is not required, such as salary credits, bill payments, or fund transfers between accounts.

RTGS is suitable for time-critical or high-value transactions that require immediate fund availability, such as large business payments, real estate transactions, or interbank settlements.

NEFT transactions are processed and settled in bulk during the NEFT settlement cycles, leading to a slight delay in fund availability to the beneficiary compared to RTGS.

RTGS transactions are processed individually and settled immediately, ensuring instant fund availability to the beneficiary's account.

NEFT transactions are typically used for both retail and corporate payments, including utility bill payments, loan EMIs, vendor payments, and remittances.

RTGS transactions are commonly used for high-value payments and financial transactions, such as large business-to-business payments, interbank transfers, and government transactions.

NEFT does not provide immediate confirmation of fund availability to the sender or the beneficiary, as the settlement process occurs in deferred batches.

RTGS provides immediate confirmation of fund availability to the sender and the beneficiary, as the settlement is done individually and in real-time.

NEFT transfers are processed through net settlement, where transactions are grouped together, and the net amount is settled at specific intervals during the day.

RTGS transfers are processed through gross settlement, where each transaction is settled individually, without offsetting against other transactions.

NEFT transfers can be initiated through various channels, including internet banking, mobile banking, ATM, or by visiting the bank branch.

RTGS transfers can be initiated through channels such as internet banking, mobile banking, or by visiting the bank branch, depending on the bank's available options.

NEFT transfers can be made from and to any bank account in India, regardless of the location or the bank's presence.

RTGS transfers can be made from and to any bank account in India, regardless of the location or the bank's presence, as long as the bank is a participant in the RTGS system.

NEFT provides a flexible and convenient option for fund transfers, allowing individuals and businesses to initiate transactions based on their preferred timings and settlement cycles.

RTGS offers immediate and real-time fund transfer capabilities, making it suitable for time-sensitive and high-value transactions that require instant settlement.

NEFT is widely adopted in India and used by individuals, businesses, and government entities for various payment purposes.

RTGS is also widely adopted in India and used for large-value transactions, such as interbank transfers, high-value business transactions, and government-related payments.

NEFT is considered a reliable and cost-effective payment system for non-urgent or non-critical fund transfers within the country.

RTGS is considered a secure and efficient payment system for time-sensitive and high-value transactions that require immediate settlement.

NEFT transfers may have longer processing times compared to RTGS, as the settlement occurs in batches and the funds are credited within specific time windows.

RTGS transfers are processed in real-time, ensuring immediate availability of funds in the beneficiary's account.

NEFT is regulated by the Reserve Bank of India (RBI) and operates under the guidelines and rules set by the central bank.

RTGS is also regulated by the Reserve Bank of India (RBI) and operates under the guidelines and rules set by the central bank.

NEFT provides an electronic platform for funds transfer, replacing the need for physical checks or cash transactions.

RTGS provides a secure and efficient platform for real-time electronic funds transfer, facilitating quick and reliable high-value transactions.