What are NEFT and RTGS, and what are the differences between them?

Question

Accepted Answer

NEFT and RTGS are both electronic payment systems in India, differing in transaction speed and minimum transfer limits.

NEFT (National Electronic Funds Transfer) operates in batches, processing transactions at specific intervals.
RTGS (Real Time Gross Settlement) processes transactions in real-time, making it faster for urgent transfers.
NEFT has no minimum transfer limit, while RTGS requires a minimum of ₹2 lakh.
NEFT is suitable for smaller, non-urgent transactions, whereas RTGS is ideal for high-value, time-sensitive payments.
Example: Transferring ₹10,000 can be done via NEFT, while transferring ₹5 lakh would typically use RTGS.

Accepted Answer

NEFT and RTGS are electronic fund transfer systems used for interbank transactions in India.

NEFT stands for National Electronic Funds Transfer and is used for transferring funds up to Rs. 2 lakhs.

RTGS stands for Real Time Gross Settlement and is used for transferring funds above Rs. 2 lakhs.

NEFT transactions are settled in batches while RTGS transactions are settled individually and in real-time.

NEFT transactions can be initiated and completed on any working day while RTGS transactions can only be initiated and completed on working days and during working hours.

Both NEFT and RTGS require the sender and receiver to have bank accounts with banks that are part of the respective systems.

Accepted Answer

Neft is should be upto 2 lac amount transferred only and above 2 lack amount to onwards is should b a RTGS.

Accepted Answer

While NEFT has no minimum or maximum limit on the amount to be transferred, RTGS transactions can only be performed if the amount to be transferred is equal to or more than Rs. 2 lakh. Similarly, NEFT transactions take around 2 hours to be processed, while RTGS transactions are processed immediately.

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What are NEFT and RTGS, and what are the differences between them?

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