Difference Between NEFT and RTGS

By K Balaji|Updated : November 29th, 2022

The Main Difference Between NEFT and RTGS is that NEFT transactions are not time-sensitive. On the other hand, RTGS is a payment system that settles financial transactions in real time. As a result, people prefer RTGS for large-scale, time-sensitive transfers.

Difference Between NEFT and RTGS PDF

Due to the development of online payment choices and increased customer technology usage, transferring payments from one bank account to another has become exceedingly easy. Here, we will explore the comparison between NEFT and RTGS systems in detail.

Difference Between NEFT and RTGS

NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement System) are online money transfer systems that allow two parties inside the same bank or banks to send money to one other. Regardless, there are significant differences between them which are elaborated on below.


Difference Between NEFT and RTGS



The lower limit of the transaction is Rs. 1. However, there is no upper limit.

One must transfer a minimum amount of Rs. 2 Lakhs.

Also, there is no maximum transferrable mount.

The bank settles the fund in different half-hourly batches. Therefore, a money transfer may take more than two hours, depending on the amount transferrable.

One-to-one settlement in real-time is the distinguishing feature of RTGS. Hence, the money transfer is immediate.

One can transfer funds through NEFT any time, any day.

The fund transfer timings are different in different banks.

There are no additional charges for NEFT transfers.

There is an additional charge of Rs. 55 for outward transfers of more than Rs. 5 Lakh. It is Rs. 30 for similar transfers of more than Rs. 2 lakhs but less than five lakhs.

If NEFT transactions fail or are not completed on time, destination banks will return funds to the originating branch within two hours of the transaction.

The remitting bank credits the funds received from a failed RTGS transaction to the sender's account. The bank returns the find to the originating bank within one hour or by the conclusion of the RTGS business day, whichever comes first.


NEFT and RTGS are electronic payment methods that allow one to transfer money across the country. Moreover, they are popular among business people who need to perform large-scale transactions. When selecting an ideal transaction type, it is critical to understand the difference between NEFT and RTGS to transact as per your need and circumstances.

What is NEFT?

NEFT (National Electronic Funds Transfer) is a money transfer service that operates 24 hours a day, seven days a week, and processes transactions in half-hour increments. They are the most extensively used payment systems.

The Reserve Bank of India has not established a minimum or maximum transfer amount. The main advantage of NEFT over RTGS is that the payments are settled in half-hourly batches in the NEFT. NEFT is preferable if one needs to transmit a little money without minding the payment delay.

What is RTGS?

RTGS (Real-Time Gross Settlement System) is a payment transfer system that enables money to flow in real-time from one bank to another. People use RTGS for high-value transactions. If one has to make money transfers of significant value in real time, RTGS is better.

As a result, even if there is no maximum amount you can send, one must transfer at least INR 2 lakhs at a time. When the transaction value is significant and requires real-time settlement, RTGS is a better option.

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FAQs on Difference Between NEFT and RTGS

  • The Difference Between NEFT and RTGS regarding accessibility is that NEFT is more accessible than RTGS, as even those without a bank account can transfer funds through NEFT. However, there is an upper limit of Rs. 50,000 for such transactions

  • The Difference Between NEFT and RTGS concerning transaction charges is as follows:

    In January 2021, the Reserve Bank of India scrapped all existing charges on NEFT transactions. Also, there are no additional charges for inward and online RTGS transfers. However, you must pay from Rs. 30 to 55 for outward transactions, depending on the money transferrable

  • After analysing the Difference Between NEFT and RTGS, it can be concluded that if the payment is significant and time-sensitive, RTGS is a better option. If not, NEFT will suffice.

  • Regarding the Difference Between NEFT and RTGS regarding the safety of payments, both are safe and secure, governed by the Reserve Bank of India. They help the country migrate to a cashless, digital economy.

  • RTGS is considered the faster mode of transaction between NEFT and RTGS. It is most extensively used for quick payments. NEFT has a 2 hours window of processing, but the RTGS occurs instantly. Real Time Gross Settlements are instant.

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