Q. What is NEFT and RTGS?
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. This can be used to transfer funds to any banks or branches. Under this Scheme, customers can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country. There is no limit on the amount of funds that could be transferred using NEFT.
Q What is RTGS?
This is a method of interbank fund transaction. The acronym 'RTGS' stands for Real Time Gross Settlement. It is the continuous (real-time) settlement of funds transfers individually on an order by order basis. These payments are final and irrevocable. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ` 2 lakh. There is no upper ceiling for RTGS transactions.
Q. What is the difference between NEFT and RTGS?
Fund transfer transactions are settled in batches for NEFT, while individual settlements are done in RTGS. Hence RTGS is a faster method compared to NEFT.