written by | May 13, 2022

Difference Between NEFT and RTGS

Money transfers are a regular and safe phenomenon. In the current scenario, there are various methods to transfer money from one bank account to another. These are all simple techniques. However, we need to execute them with high awareness and caution to avoid illegal activities. It's possible to transfer huge amounts of money through banks.

Did you know?

Customers with current or savings accounts are eligible for the NEFT or RTGS service. Anyone who does possess a banking account can deposit cash at NEFT-compatible branches. However, the maximum cash withdrawal amount is just ₹50,000 per transaction.

Also Read: IMPS (Immediate Payment Service)- What is IMPS Transfer, IMPS Payment, Timings & Limit

NEFT and RTGS Meaning

NEFT and RTGS are electronic payment systems that allow users to transfer money between banks. The Reserve Bank of India manages both of these systems, and these are only valid for transferring money within the country.

With RTGS, the transfer of funds occurs on a real-time basis which is to say, when the request is made. It is among India's most efficient interbank money transfer options available via banks. The beneficiary bank must debit the recipient's account within 30 minutes after receiving the money transfer message.

In contrast, NEFT operates on a deferred settlement basis. The transfer of funds under NEFT is 

processed in batches, in contrast to the live settlement method in RTGS. Each batch is settled using hourly intervals of time. The following table illustrates the difference between NEFT and RTGS. Have a look to know more.


NEFT is an acronym that stands for National Electronic Funds Transfer. It's a reliable method to transfer funds electronically from one account to another. It is a nationwide scheme that permits money transfers between Indian banks only. NEFT is a method that settles funds in batches. The process is quite complex. However, it allows for the safe processing of money. The time slot for NEFT transactions between banks is between 8 am and 7 pm. 

Advantages of NEFT

Now that we know what NEFT is, let's look at some of its benefits.

  • This service is available 24 hours a day all year round, even on holidays.
  • Transfer funds from any account at any NEFT-enabled bank in India.
  • The money is securely transferred within 30 minutes.
  • There is no requirement to pay any fees for online NEFT transactions.
  • The transaction confirmation is sent to the recipient via SMS or email.
  • There is no need for cash or demand drafts for these transactions.
  • You can pay your EMIs, credit cards and utility bills through NEFT.
  • You do not need to go to the bank branch to transfer funds via NEFT.

NEFT Transaction

Follow the steps below to transfer money via NEFT.

  1. Log into your online bank account from your laptop/mobile.
  2. Click on the 'Fund Transfer' tab, selecting the' NEFT' option.
  3. Select your beneficiary or create another one using the 'Add Beneficiary' tab. Input their information like the name of the bank branch, account number, IFSC code, mobile number and name. After adding the beneficiary, you can initiate the transaction in the next 30 minutes.
  4. Confirm the beneficiary's details: Name, mobile phone number (for SMS-based notifications) and account number.
  5. You can complete your transaction using the OTP sent to your registered Mobile Number (RMN).
  6. Your bank will then send you and the beneficiary an SMS to confirm the transaction.


RTGS means Real-Time Gross Settlement. It is the easiest and fastest method of transferring funds between account holders at banks in India, and this process is an instant transfer of funds. RTGS lets you transfer funds simultaneously and in a short amount of time. The minimum amount for fund transfer using RTGS can be ₹2 lakhs. There are offline and online alternatives to transfer funds electronically via RTGS.

Advantages of RTGS

  1. There aren't any additional fees that are imposed on RTGS transactions.
  2. RTGS is among the most secure and the fastest method in interbank transactions.
  3. It's a non-paper transfer of money.
  4. The beneficiary does not have to go to the bank to deposit the funds.
  5. The facility is accessible at all times during business hours. The timings of this facility can differ between banks.
  6. It's an instant money transfer system.

  1. It's possible to transfer the money via the online banking service.
  2. RTGS is now accessible 24 hours a day from Monday through Sunday.
  3. It doesn't pose any risks to the settlement or credit of the beneficiaries as each transaction is paid instantly.
  4. RTGS facility is available online or mobile banking or offline at the bank branch.
  5. Customers can anticipate cash flow by knowing when their account will be debited or credited.

RTGS Transactions

Follow the steps given to conduct RTGS transactions online

  1. Log in to your online banking account
  2. In the top-right corner, select "Fund transfer."
  3. From the drop-down menu, choose "RTGS."
  4. Make sure you "Add beneficiary" to the beneficiaries list in your account if you haven't done it already.
  5. Select the "Add beneficiary" option on the screen to add a beneficiary.
  6. Input the beneficiary's required information, including your name, IFSC, bank account number, etc.
  7. Click on 'Confirm' or 'Add.'
  8. You must input the OTP you get to your mobile number registered with the company to verify this step.
  9. Once you have done that, it can take up to 24 hours to include a beneficiary.
  10. After the beneficiary has been registered in your bank account, you will need to choose the beneficiary's details (to whom you must transfer the funds) from the list of beneficiaries.
  11. Input the amount that you need to transfer, and then confirm the transfer
  12. Click 'Confirm', and the funds are transferred directly to the other person's account from your account.

Also Read: What are the Different Digital Payment Methods?

Similarities Between NEFT and RTGS 

  • The two RTGS and NEFT are safe methods to transfer electronic funds from one account at a bank to another account.
  • Both analytics for transfers are recorded in the Reserve Bank Of India documents.
  • Both RTGS and NEFT are available in offline/online mode.
  • The option of transferring money is limited in Indian banks and bank accounts. It is a nationwide scheme for the secure transfer of money.
  • Both NEFT and RTGS methods of transferring money can be subject to fees, including GST. The fees vary according to how much money you transfer.


Understanding the differences between NEFT and RTGS is essential when deciding the best method for you. If you need to make transactions of huge sums of money instantly, RTGS is the better choice for you. If you need to transfer a small amount of money with any urgent need for clearance, NEFT is the best alternative.

Both are secure and safe methods of transfer of funds, and RBI closely monitors them. Both services are readily accessible 24*7*365 through banking portals, banks' websites and mobile apps that you can use via Google Play and the iOS app store for phones with the internet.

Important Considerations Before Transferring Funds

  • Transfer fees: An additional charge is charged to transfer funds. In case you receive the funds, there is no fee.
  • Timings: Timings Dependent on the bank and the location. The timings of every transfer will differ. For RTGS, according to the bank's location and the area, the hours of operation will differ. The NEFT payment method is accessible 24 hours a day, 7 days a week.
  • GST: According to the current guidelines, GST will apply to transaction fees.
  • Network: Both banks have to be in the network to complete the transfer.


NEFT and RTGS allow for the transfer of funds via the internet. They make money transfers simple and quick. NEFT provides a variety of advantages. It's not limited to personal payments, and NEFT can handle it all for other payments, like personal loans from EMIs credit card payments. Both of these methods have positives/and negatives.

There isn't a transaction fee associated with both payment methods, and RTGS transactions are irrevocable. The NEFT and RTGS methods are beneficial in today's society, where there isn't enough time to make a trip to banks. The transactions are possible using online and offline channels and they are vital to the modern digital age.

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Q: What is the main NEFT and RTGS difference?


NEFT operates on a deferred settlement basis, whereas RTGS offers real-time payment settlements.

Q: Which is faster and safer, NEFT or RTGS?


NEFT requires a slightly longer time to process than RTGS. NEFT and RTGS are both safe alternatives for money transfers.

Q: Can I make NEFT or RTGS by myself?


The two methods, NEFT and RTGS, can be performed in the comfort of your own home and at any time with internet banking. The primary requirement to use this method is a reliable internet connection and online bank account details.

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