NEFT and RTGS are two different modes of electronic fund transfer available in India. Here are the differences between NEFT and RTGS:
NEFT (National Electronic Funds Transfer):
- Operates on a Deferred Net Settlement basis.
- Transactions are settled in batches of half an hour.
- No minimum or maximum limit on the transfer amount.
- Available 24*7.
- Suitable for transferring small to large amounts of money.
RTGS (Real-Time Gross Settlement):
- Processes transactions in real-time on a transaction-by-transaction basis.
- Transactions can only be performed if the amount to be transferred is equal to or more than Rs. 2 lakh.
- Highly safe and secure mode of payment which is monitored by the government.
- Suitable for high-value transactions.
In summary, NEFT is a payment system where the transaction gets processed in batches of half an hour, while RTGS processes transactions in real-time on a transaction-by-transaction basis. NEFT has no minimum or maximum limit on the transfer amount, while RTGS transactions can only be performed if the amount to be transferred is equal to or more than Rs. 2 lakh. NEFT is suitable for transferring small to large amounts of money, while RTGS is suitable for high-value transactions.
