What is Difference Between RTGS and NEFT – Latest Guide

RTGS and NEFT are two commonly used electronic money transfer systems in India. However they have different speeds and processing times. RTGS allows for immediate and real time money transfers which make it suitable for urgent payments. It operates continuously during banking hours. On the other hand, NEFT transfers money in batches which can result in a short delay compared to RTGS. It operates in time slots throughout the day. Both RTGS and NEFT are accessible through online and mobile banking platforms.  In this article we will discuss about the difference between RTGS and NEFT.

What is Difference Between RTGS and NEFT – Latest 2024

Table of Contents

What is RTGS?

RTGS (Real-Time Gross Settlement) is a lightning-fast fund transfer system that works directly through central banks. Transactions are processed immediately and final, without any delay for balancing accounts. Each payment is handled separately which ensure the instant transfer of funds.

How to transfer funds through RTGS?

By following the below steps, you can transfer the funds through RTGS:
  1. Log in to bank account online or visit your branch offline.
  2. After login, click on “fund transfer” option.
  3. Select “RTGS” option for fund transfer
  4. Fill the required details for fund transfer.
  5. Click on the “submit” button.
  6. For the purpose of fund transfer through RTGS, you must have the below details of beneficiary:
    • Name
    • Bank and branch name
    • Bank account number
    • IFSC of bank account

RTGS Transfer Fees

  • No fees for transfers under ₹2 lacs (since RTGS is not available for smaller amounts).
  • The fees range from ₹24.50 to ₹30 plus GST for transfers between ₹2 lacs and ₹5 lacs.
  • The fees range from ₹49.50 to ₹55 plus GST for transfers exceeding ₹5 lacs

Advantages of RTGS

The following benefits make RTGS an efficient method for transferring the funds:
  • Transfers money instantly and securely.
  • Eliminates the need for required person bank visits.
  • Digitizes payments which reduce the need for physical documents.

Disadvantages of RTGS

  • Higher transaction fees compared to NEFT.
  • Lacks real time transaction tracking for customer.
  • Customers only receive confirmation upon payment completion.

What is NEFT?

National Electronic Fund Transfer (NEFT) is a commonly used electronic payment system in India. It processes transactions in batches every 30 minutes, making it available 24/7. To make an NEFT transfer, provide the recipient’s account details and the funds will be transferred securely and conveniently.

How to Transfer funds Through NEFT?

To make a payment through NEFT, you have to follow the below-given steps:
  1. Access your bank account via net banking or mobile banking.
  2. Add the recipient (beneficiary) to your account.
  3. Click on the “Fund Transfer” option.
  4. Choose “NEFT” as the transfer method.
  5. Enter the required details of the beneficiary:
    • Bank IFSC code
    • Bank account number
    • Account holder’s name
    • Bank and Branch name
  6. Click “Submit” to initiate the transfer.

NEFT Transfer Fees

  • The transfer fee is ₹2.5 for transactions of up to ₹10,000.
  • The transfer fee is ₹5 for transactions between ₹10,000 and ₹1 lac.
  • The transfer fee is ₹15 for transactions between ₹1 lac and ₹2 lacs.
  • The transfer fee is ₹25 for transactions exceeding ₹2 lacs.

However, the banks cannot charge fees for online fund transfers initiated from savings accounts under RBI guidelines effective January 2021.

Advantages of NEFT

The following benefits make NEFT an efficient method for transferring the funds:
  • Instant and convenient money transfers.
  • Eliminates the need for physical documents and intermediaries.
  • Global availability and 24/7 accessibility.
  • Real time transactions for faster processing.

Disadvantages of NEFT

  • Not suited for urgent transfers due to the absence of instant processing
  • Minimum transfer amount requirement, typically Rs. 5,000.

What is Difference Between RTGS and NEFT?

Here is list of the difference between RTGS and NEFT:
It is for real time gross settlement
It is for electronic fund transfer
Minimum Limit
₹ 2,00,000
₹ 1
Maximum Limit
No maximum limit
No maximum limit
It is for larger sums
It is for small transactions
Settlement Time
Almost instant
Minimum 2 hours
Transfer Timing
It works round the clock on weekdays
It operates on every day except Sunday, with specific time slots
Bank Account Requirement
No, only the participating bank must be part of RTGS system
Bank account with participating bank is required
Mode of Payment
It can be used online or offline
It can be used online or offline
Additional Charges
Rs. 30 per transaction
No extra fees
Service Availability
It is available every day '24/7
It is available every day 24*7

Which is better - NEFT or RTGS?

Both NEFT and RTGS modes of payment can align with your specific fund transfer needs:
  • For transfers under ₹2 lakh and you prefer to avoid transfer fees, NEFT is suitable.
  • For transfers exceeding ₹2 lakh, RTGS offers a reliable option.


In simple terms, both NEFT and RTGS are safe ways to make payments. There are not huge difference between RTGS and NEFT but your choice between them depends on how urgent and how much you need to transfer. For large amount, you should go with RTGS. If it is not urgent and the amount is not large, NEFT works fine. Both are secure because the RBI oversees them. Additionally you can make payments securely without visiting the bank. This post clears up the difference between RTGS and NEFT.

Frequently Asked Questions (FAQ)

NEFT, managed by the Reserve Bank of India (RBI), enables fast interbank money transfers across India. Whereas RTGS (Real-Time Gross Settlement) processes and settles funds digitally between banks instantly.

Once initiated, online NEFT transactions cannot be stopped or canceled during their designated time frame.

Individuals without a bank account can utilize NEFT services by depositing cash at NEFT-enabled bank branches and providing the required information.

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