RTGS vs NEFT? What is the Difference?

I have been a long time confused between the two types of Electronic Funds Transfer system used in India between banks. When you send payments to other bank account in India through Internet banking you might stumble upon either payment through RTGS or NEFT.

Here is the main difference.

RTGS (Real Time Gross Settlement)

It means the funds will be credited immediately to the payee account in real time. No delays. The minimum amount to send is Rs 2 lac. Not all banks are RTGS enabled. You should inquire with your bank.

NEFT Transfer

EFT or NEFT (National Electronic Funds transfer) is basically bit delayed transfer takes 1 or 2 days to complete. There is no minimum or maximum limit to do the funds transfer. The settlement takes place 6 times a day and 3 times on saturdays.

Source: Reserve Bank Website

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Prabhu Balakrishnan

I am cool and friendly internet entreprenur blogging since 2005. My interests are wordpress, PHP, linux servers, SEO and travel. Besides computers, i am crazy for video games, travel and a cup of hot coffee! I am born in Coimbatore, India but i currently live in Budapest, Hungary. Feel free to contact me folks!

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  1. Kathiravan Manoharan

    SBI has started charging for NEFT transfers, pls chk this for more information http://paisamechanic.blogspot.com/2008/12/sbi-neft-fund-transfer.html

    Thanks,
    -Kathiravan Manoharan

    Reply
  2. srinivas

    Now i transferred rs 10000/- through NEFT , but the balance has not been deducted till now from my account, so what can i confirm that the transaction is successful or not, please mail me..

    Thanks

    Sriinivas

    Reply
    • Navya

      ONCE WE MAKE TRANSACTION WE ARE SUPPOSE TO AUTHORIZE THE SAME IN ORDER TO MAKE THE TRANSACTION SUCCESS. WITH IN A SECOND WE WILL RECEIVE A CONFERMATION MESSAGE. IN CASE WE DONT RECEIVE CONFIRMATION MESSAGE PROBLEM IS AT OUR END. KINDLY CHEQUE BENEFICIARY ACCOUNT DETAILS AGAIN(IFSC CODE AND ACCOUNT NUMBER).

      Reply
  3. Mangesh Chavan

    I am still in confusion that while cash withdrawal more than 49999 Rs payee need to submit photocopy of PAN only?

    Reply
  4. v vasan

    No doubt the information is OK. However there is scope for improvement.
    With the present pay all most all are very very busy, but no time to go through in detail.
    It is better to furnish all the required data in the form of MATRIX SO THAT it is easy to read & understand.

    Reply