Difference Between NEFT and RTGS – NEFT vs RTGS

By BYJU'S Exam Prep

Updated on: November 14th, 2023

The 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. NEFT is cheaper than RTGS. NEFT is a better option if you want to transfer a small amount of money with less urgency.

Difference Between NEFT and RTGS PDF

NEFT is available 24×7, while RTGS is available only during banking hours. 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 and difference between NEFT and RTGS systems in detail.

Difference Between NEFT and RTGS

A prominent difference between NEFT and RTGS is that NEFT stands for National Electronic Funds Transfer, and RTGS stands for Real-Time Gross Settlement System. Both are online money transfer systems that allow two parties inside the same bank or bank 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.


Key Difference Between NEFT and RTGS

The key Difference Between NEFT and RTGS is that NEFT stands for National Electronic Funds Transfer, where one can transfer funds through NEFT anytime. In contrast, RTGS stands for Real-Time Gross Settlement System, wherein the fund transfer timings vary in distinct banks.

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