NEFT (National Electronic Fund Transfer): NEFT enables funds transfer from one bank to another but works a bit differently than RTGS. NEFT is slower than RTGS. The transfer is not direct and RBI acts as the service provider to transfer the money from one account to another. You can transfer any amount through NEFT, even a rupee. There is no Minimum & Maximum Limit in NEFT.
Need of NEFT: We can use this facility if we want to transfer funds online in a day or two. NEFT can make life easier for those who need to send money to their parents or children living in another city. It cuts the trouble of issuing a cheque or draft and posting it. It can also be done through internet banking.
RTGS (Real time gross settlement ): RTGS system is funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis.
Minimum & Maximum Limit of RTGS: 2 lakh and no upper limit.
In an RTGS system, transactions are settled across accounts held at a Central Bank on a continuous gross basis. Settlement is immediate, final and irrevocable (which cannot be changed or reversed).
Need of NEFT: We can use this facility if we want to transfer funds online in a day or two. NEFT can make life easier for those who need to send money to their parents or children living in another city. It cuts the trouble of issuing a cheque or draft and posting it. It can also be done through internet banking.
RTGS (Real time gross settlement ): RTGS system is funds transfer systems where transfer of money or securities takes place from one bank to another on a "real time" and on "gross" basis.
Minimum & Maximum Limit of RTGS: 2 lakh and no upper limit.
In an RTGS system, transactions are settled across accounts held at a Central Bank on a continuous gross basis. Settlement is immediate, final and irrevocable (which cannot be changed or reversed).
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